Analysts considered what the future holds for Bitcoin prices after their recent decline. (Photo illustration … [+]
Bitcoin price experienced some notable declines today, repeatedly approaching $60,000 and falling to its lowest value in weeks.
At the time of writing, the digital currency was trading at nearly $61,300, according to CoinMarketCap figures.
After these recent declines, what's next for digital currencies? Several experts joined us to comment on the crypto market and provide technical analysis.
These latest price movements materialized just days before the upcoming 2024 halving. The halving is scheduled to take place two days from now, and the new supply of Bitcoin will drop to 450 units per day instead of the current 900 units.
If demand remains stable or even increases, it may put upward pressure on the price of digital assets and result in significant profits.
Despite these bullish factors, Bitcoin prices have fallen recently, which some analysts interpret as a result of market participants “buying the rumor and selling the news” surrounding the halving. ing.
Several market observers have highlighted key levels of support and resistance that traders should keep an eye on going forward.
Tim Enneking, Managing Partner at Psalion, spoke on the matter.
“The key question at the time of this writing is: Is $60,000 really going down?” he said in an emailed comment.
“The last time it fell to this level was in early March, when it actually briefly topped $59,000, but quickly recovered and put in an ATH in less than 10 days. For that reason and others, there is a lot of support available for just under $60,000,” Enneking said.
“However, if $58,000 falls, which I have a sneaking suspicion it will, the next real support would be just above $52,000,” he said.
Enneking further clarified his outlook on digital currencies and spoke about the key trends that could impact prices.
“Given that we’ve seen a decline of about two-quarters after each of the past three halvings, I suspect we’ll see the same thing this year. One of the wild cards is the U.S. spot by the SEC. ETH ETF decision. If another crypto spot ETF is approved, it will likely be smaller and shorter than the last three halvings. ” predicted Enneking.
Brett Shiffring, an investment advisor at Gerber Kawasaki Wealth and Investment Management, also cited the $60,000 price level.
“Bitcoin has seen a massive rally over the past six months, before consolidating between just under $74,000 and highs around $60,000. “This scope of consolidation is important to note because it could suggest continued momentum in either direction,” he said in an emailed comment.
“If we break through the highs, we will be in uncharted territory and will need to focus on ballpark numbers like $90,000 and $100,000. Investors tend to like round numbers, and to lock in profits. “Sell orders tend to pile up,” Schiffling said.
He added: “On a downside break, sustaining above $50,000 would be important for Bitcoin to maintain its bullish momentum.”
When asked if this is the price level that traders should focus on if the cryptocurrency breaks out of its current support, Shiffling said: “Yes, the $50,000 to $52,000 range is the same as it was in February of this year. “This is the last major support level set.”
“This was also a previous resistance level dating back to September and December of 2021.”
Shiffring also provided some thoughts on the key variables that may be of interest to crypto market observers in the coming weeks and months.
“After the halving, I don’t think there will be any new big catalysts that Bitcoin investors will take notice of,” he said.
“I think people are paying attention to the ETF flow. Hearing about institutional investors and countries around the world adding to Bitcoin could be positive news in the future.”
“Investors will also be keeping an eye on macro factors such as Powell’s interest rate cuts, which could lead the market to risk-on behavior, which could be advantageous for Bitcoin and cryptocurrencies as a whole. “Yes,” Shiffling pointed out.
William Noble, currently director of research and content development for Emerging Assets Group, also participated and provided some technical analysis.
“Bitcoin just established its square trading range for March and April. This range feels similar to the February range,” he said.
The chart below helps explain the aforementioned trading range.
Bitcoin square trading range
“Bitcoin has broken out of its square range, and a breakout from this range is very likely,” Noble said.
“The breakout could be very sharp as BTC broke through the bottom of Square on April 17th,” he noted.
The technical analyst pointed out that if Bitcoin breaks out of the bottom of the square range, the key support levels that market observers should keep an eye on are $60,700 and $57,700.
“If it turns out to be a ‘false breakdown,’ technical analysis theory suggests that a sharp rally and breakout above the top of the square could occur.”
“The reason for a potential breakout is simple: Bitcoin has just squeezed or liquidated all buyers since February 24th,” he said.
“Leveraged players and late retail buyers were likely forced to sell or sold out of fear. Before you know it, Bitcoin could rise in dramatic fashion. ”
Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.
