Bitcoin technical analysis: I’m eyeing a possible bounce up at $61k-$62k double support
In the dynamic landscape of cryptocurrency, observing and interpreting market trends is paramount for anyone engaged in trading or investing. In my latest analysis of Bitcoin (BTC/USD), I’ve captured a pivotal movement indicating a potential shift in its market trajectory. This analysis leverages the most current data and technical indicators to shed light on what might be on the horizon for Bitcoin.
Recent performance and observations for BTCUSD on the 4 hourly chart 📉
Bitcoin has recently undergone a significant downturn, with a decrease of approximately 6.23% from its previous highs. This trend is noteworthy, especially considering my earlier forecast, which anticipated a range between $65k to $69k. Bitcoin almost reached the upper echelon of this prediction, peaking at $68,933 on Coinbase.
However, the scenario has since shifted, marking an 8.68% decline from the $69k threshold. This movement has resulted in Bitcoin breaching below an intermediate support level, an essential observation for those tracking the BTC/USD pair closely.
Anticipating the next critical phase 🧐
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Technical analysis insights… see video above: The analysis suggests a critical juncture lies ahead within the $61k to $62k range. This prediction isn’t solely based on the recent candlestick patterns but also encompasses a thorough examination of 4-hourly candles and supplementary technical charts. This zone is identified as a pivotal support area that could significantly influence Bitcoin’s immediate market behavior.
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Bear flag formation: A bear flag pattern has been identified, indicating a bearish outlook as Bitcoin exited downwards from this configuration. This development signals a potential approach towards the lows at the double support area, marking the inception of the current bearish channel.
The importance of the $61k-$62k support 🛡️
The support level between $61k and $62k is meticulously chosen based on a consolidation period that previously catalyzed a bullish momentum. This area is poised to be a vital watchpoint for traders, potentially acting as a robust double support influencing Bitcoin’s forthcoming movements.
Bitcoin price forecast
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Looking ahead for bitcoin: The $61k-$62k support level stands out as a significant potential turning point for Bitcoin. It emanates from a period of consolidation that had earlier served as a bullish springboard.
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Forecasting bitcoin price: Given the current patterns and the bear flag breakout, my analysis leans towards a revisit to this double support zone. It represents a critical area of interest that could dictate the short-term direction of Bitcoin.
Conclusion and trading guidance ⚠️
While my analysis offers a speculative glimpse into Bitcoin’s potential trajectory, it’s crucial for traders and investors to tread carefully. The volatile nature of the cryptocurrency market demands informed decision-making and robust risk management strategies.
For continuous updates, comprehensive analyses, and diverse perspectives on Bitcoin and other cryptocurrencies, ensure to check back on my platform. Trading involves inherent risks, and it’s imperative to conduct thorough research and consider various viewpoints before engaging in investment activities.
Thank you for engaging with my analysis. Stay tuned for more insights and updates at www.ForexLive.com in the cryptocurrency market.
This article was written by Itai Levitan at www.forexlive.com. Source