Bitcoin, the undisputed king of cryptocurrencies, is in a tug-of-war between bullish whispers and bearish roars. While some analysts point to technical indicators pointing to a price increase, others warn of potential pitfalls lurking beneath the surface.
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Bulls see bullish flags and futures
Technical analysts are a strange breed. They speak in a language of charts, patterns and indicators and decipher the cryptic movements of the market. One of those indicators, the bullish flag pattern, has made some analysts, such as Gert van Lagen, cautiously optimistic.
$BTC [2D] – The handle of the 3Y+ Cup with Handle itself qualifies as a bull flag targeting $127k.
Price has clearly broken out and successfully retested the flag for support.#BTC is ready for the next step up 📈
Invalidation Settings: Close below $60k pic.twitter.com/5fDkeubpvT
— Gert van Lagen (@GertvanLagen) June 16, 2024
This pattern suggests a potential price increase based on recent price movements, with Bitcoin consolidating within a specific range before a potential breakout occurs.
Lagen added that BTC had successfully tested the support. If true, Bitcoin could soon start a bull run and reach $127,000 in the coming weeks or months.
Adding fuel to the bullish fire is the apparent dominance of buying sentiment among futures investors. Futures contracts allow investors to speculate on the future price of an asset, and in this case it appears many are betting on the rise of Bitcoin. This could create a self-fulfilling prophecy as more purchases drive up the price, attracting even more buyers.
A worrying trend?
Meanwhile, on-chain data, which is the movement of Bitcoin on the blockchain reveals a worrying trend. There has been an increase in deposits on exchanges, indicating that investors are moving their Bitcoin to platforms where it can be easily sold. This signals a potential selloff on the horizon, which could put downward pressure on the price.
Bitcoin Short-Term Outlook
Bitcoin’s immediate future appears to be balancing precariously on a tightrope. Technical indicators such as RSI, CMF and MACD, which measure investor momentum and strength, are currently bearish, indicating a continued decline in prices.
This matches the prediction of some analysts who see Bitcoin potentially falling as high as $60,000 in the coming days if the bearish trend continues.
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However, there is a silver lining for the bulls. If Bitcoin can defy the bearish signals and turn bullish, analysts predict an initial climb to $67,650. This short-term price movement will likely depend on a delicate balance between buying pressure and eventual selling.
Featured image from YouTube, chart from TradingView