Bitcoin price has now fallen back to $67,000 after surging above $71,000 earlier in the week. Given the circumstances surrounding the price rebound and subsequent decline, this has led to cryptocurrency analysts breaking down technical indicators to find out where the price is heading. One cryptocurrency analyst in particular stated that the cryptocurrency has entered a key zone, with critical levels to watch that could determine where the price is heading.
Bullish scenario for Bitcoin
Currently, a break below $70,000 has put Bitcoin’s price in a risky situation, making the current level just above $67,000 crucial for next steps. Crypto analyst The Signalyst highlights this in his latest Bitcoin analysis, in which he stated that the BTC price is in the “make or break zone”.
As The Signalyst points out, Bitcoin was able to break the accumulation level between $60,000 and $62,000, which allowed investors to enter the market. Despite the decline on the last day, the price remained at the upper limit of this range.
For the bullish scenario to continue, the cryptocurrency analyst explains that BTC needs to continue to completely break the upper end of this range, which is $72,000. This is the main resistance for the bulls. If this happens, The Signalyst believes that Bitcoin price will move towards the next major resistance at $80,000.
A bearish scenario for BTC
Similar to the bullish scenario, the bearish scenario for Bitcoin could play out at this level. As The Signalyst points out, although the price is still at the upper end of the range, there is a risk of it being pushed down by bears.
In this case, the level to watch is the lower trend line, which is currently around $62,000. Much like the resistance at $72,000, the support at $62,000 is what the bears need to break before they can push the price even lower. If this scenario were to come true and the bears managed to break the lower trend line, then the analyst’s chart shows that the price of Bitcoin could drop to as much as $56,000. This would represent a decline of over 20% from the current price.
BTC price
Currently, the Bitcoin price continues to show some bullish momentum, with daily trading volume increasing by over 40% in the last 24 hours alone. This suggests that investors are still actively engaged in the cryptocurrency, which could drive up its price.
At the time of writing, BTC is hovering around $67,300, with a loss of 3.29% in the last day, but still maintaining a slight gain of 1.68% on the weekly chart.
Featured image created with Dall.E, chart from Tradingview.com
