The Bitcoin price has now fallen back to $67,000 after rising above $71,000 earlier this week. Given the circumstances surrounding the price recovery and subsequent decline, this has led crypto analysts to scour the technical indicators to figure out where the price will go next. One crypto analyst in particular has determined that the cryptocurrency has entered a crucial zone, with key levels to watch that could tell where the price is headed.
Bullish scenario for Bitcoin
Currently, the break below $70,000 has put the Bitcoin price in a dangerous situation, making the current level just above $67,000 crucial for the next steps. Crypto analyst The Signalyst highlights this in their latest Bitcoin analysis, where they found that the BTC price is in a ‘make or break zone’.
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As The Signalyst notes, Bitcoin had managed to break above the accumulation level between $60,000 and $62,000, allowing investors to get in. Despite the decline over the past day, the price has maintained its position at the upper end of this range. .
To continue the bullish scenario, the crypto analyst explains that BTC must continue to completely break the upper limit of this range, which is the $72,000. This is the biggest resistance for bulls. If this happens, The Signalyst believe Bitcoin price will head towards the next major resistance at $80,000.
Bearish scenario for BTC
Likewise, the bearish scenario for Bitcoin could play out at this level. As The Signalyst notes, even though the price is currently still in the upper end of the range, there is a risk of the price being brought down by bears.
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In this case, the level to watch is the lower trendline, which is currently around $62,000. Just like the resistance at $72,000, the support at $62,000 is what bears need to break to pull the price further down. If this scenario were to occur and the bears were to successfully break the lower trendline, the analyst’s chart shows that the Bitcoin price could drop to $56,000. This would represent a drop of more than 20% compared to the current price.
BTC price
Currently, the Bitcoin price is still experiencing bullish momentum, with daily trading volume increasing by over 40% in the last 24 hours alone. This suggests that investors are still actively engaging with the cryptocurrency, something that could drive the price higher.
At the time of writing, BTC is hovering around $67,300, down 3.29% on the last day, but still with a small gain of 1.68% on the weekly chart.
Featured image created with Dall.E, chart from Tradingview.com