Over the weekend, Bitcoin’s price fell below $70,000, effectively erasing the previous week’s gains. The move puts the cryptocurrency in a hazardous situation as it becomes complex for bulls to find the next major support or risk a deeper decline. According to one analyst, Bitcoin bulls will need to regain and sustain $69,000 with momentum to trigger another recovery trend.
Why Bitcoin Bulls Need to Hold $69,000
According to a cryptocurrency analyst Teal Streetbulls will have to defend $69,000 to prevent Bitcoin’s price from falling. The reason for this is that Bitcoin price has a chance to rise to the levels of $73,000-74,000 if this support is maintained. After that, there is still the possibility of an eventual move towards $76,000-$77,000.
On the other hand, if the bulls lose $69,000, there will be a lot of bearish action. This bearish move would result in a decline of at least 5%, and the crypto analyst would set a target between $64,000 and $66,000. While this decline may not be as impactful as previous edged declines, it could prove negative for altcoins that are already suffering.
By Sunday, Bitcoin’s price had fallen below $69,000, but the bulls managed to hold on to the $68,000 level, staying quite close to the target. Nevertheless, this means that the bulls are currently in a complex situation and need to recover the $69,000 or watch the trend continue.
BTC is still stuck in the recovery phase
Another cryptocurrency analyst, HAMED_AZ, also published a post confirming Bitcoin’s current bearishness, stating that the digital asset has indeed entered a recovery phase. For this reason, Bitcoin price is expected to decline after initially being pushed towards the top of an ascending channel.
If the price is unable to break the resistance at the top of the channel, then the downtrend will continue, leading to a decline of over 10%. This move will likely cause Bitcoin’s price to drop below $60,000 for the first time in over a year.
Alternatively, if the price is able to successfully test and break through the channel resistance with momentum, then the downtrend may be completely broken. This scenario would lead to a rally towards $80,000 and likely spawn another round.
Featured image from Dall.E, chart from TradingView.com
