Bitcoin prices have now fallen to $67,000 after reaching over $71,000 earlier this week. Given the circumstances surrounding the price recovery and subsequent decline, crypto analysts are analyzing technical indicators to predict where the price will go next. In particular, one crypto analyst has identified that the cryptocurrency has entered a critical area and there are key levels to gauge where the price will go next.
Bitcoin bull scenario
Now, a drop below $70,000 has put Bitcoin price in a precarious position, making the current level just above $67,000 crucial for the next step. Crypto analyst The Signalyst highlighted this point in their latest Bitcoin analysis, identifying BTC price as being in a “make or break zone.”
As The Signalyst points out, Bitcoin broke through the $60,000 to $62,000 accumulation levels, allowing investors to get in. Despite the final day's drop, the price has maintained its position at the upper end of this range.
For the bullish scenario to continue, the crypto analyst explains that BTC needs to fully break through the upper limit of this range at $72,000, which is the main resistance for bulls. If this happens, The Signalyst believes that Bitcoin price will move towards the next main resistance at $80,000.
BTC bearish scenario
Just like the bullish scenario for Bitcoin, a bearish scenario could also play out at this level. As The Signalyst points out, the price is currently still at the upper end of the range, but there is a risk that it will be pushed lower by the bears.
In this case, the level to watch is the downward trend line, which is currently around $62,000. Similar to the resistance at $72,000, the support at $62,000 is what the bears must break through to push the price further down. If this scenario plays out and the bears break through the downward trend line, the analyst's chart shows that Bitcoin's price could fall to $56,000, which would mean a drop of more than 20% from the current price.
BTC Price
Currently, Bitcoin price is still showing bullish momentum, with daily trading volume increasing by over 40% in the past 24 hours alone, which indicates that investors are still actively engaged in the cryptocurrency, which could drive the price higher.
At the time of writing, BTC is hovering around $67,300, down 3.29% from the previous day but still maintaining a modest gain of 1.68% on the weekly chart.
Featured image created by Dall.E, chart taken from Tradingview.com
