John Isige
The cryptocurrency market landscape has been relatively unsettled since news broke out about a hack attack on India’s WazirX exchange, which saw over $201 million stolen in several tokens. Bitcoin price faltered after the event sliding below $64,000 and after tagging $65,000 earlier in the week.
Although relatively stable, the largest cryptocurrency had curved a modest 0.85% off its value on Friday. Altcoin majors Ethereum, Solana, XRP, and more depicted commendable resilience, revealing the high level of maturity in handling such unexpected shocks.
What’s Next As Bitcoin Enters New Accumulation Range
The uptick in price from support at $54,000 to highs of $65,000 drastically changed the outlook of the market. Investors beamed with the hope of an extended move to $70,000—one that could set the pace with a FOMO-driven rally to a new all-time high.
Conversely, the WazirX hack attack coincided with a seemingly healthy retracement. For Bitcoin price prediction to have sustained the climb to $70,000, bulls needed to take a hiatus.
The correction to support at $64,000 would call for increased accumulation as more buyers enter the market betting on the potential move past $70,000.
According to the four-hour chart, strong support is established at $64,000 in support of new buy orders. Apart from a few bearishly inclined technical indicators, most signals are bullish as we’ll discuss in a bit. This shows that buyers still have the upper hand.
Bitcoin Price Analysis As Chances Of Further Growth Increase
The Moving Average Convergence Divergence (MACD) indicator backs the short-term bearish outlook flaunting a sell signal. Should BTC price close the day below this level, traders may reconsider their long positions for shorts, thus adding to the slightly destabilized state and calling for a lower support toward $60,000.
It is essential to consider all possible outcomes to avoid being caught on the wrong side. Therefore, considering the golden cross pattern formed recently when the 50-day Exponential Moving Average (EMA) flipped above the 200-day EMA, the pullback to $64,000 may allow for liquidity accumulation ahead of the next breakout.
The 50-day and the 200-day EMAs are in line to prevent declines from stretching to $60,000.
Holding above the 20-day EMA, although delicately, signals a strengthening bullish trend. Hence, closing above it would cement the bulls’ presence creating a suitable environment for more gains in the short term.
Bitcoin price is expected to ignite interest among traders with a breach of the upper descending trendline resistance. A 12% increase from here would push BTC above $72,000.
In recent market research, CryptoQuant speculated on a possible bottom level for BTC as large sellers get weary. Selling pressure from the German government had kept Bitcoin price suppressed last week. Coupled with Mt. Gox creditors receiving payments from the defunct exchange curtailed potential recovery for some time.
However, as selling pressure waned, sellers, in general, realized $2.5 billion in losses. Following the correction in the last 24 hours, total liquidations in the derivatives market reached $44 million.
Longs accounted for the lion’s share of the liquidated positions at $31.8 million with shorts standing at $11.88 million based on Coinglass data. Recovery to $70,000 may take some time considering the liquidation and a -0.005% Bitcoin OI-weighted funding rate.
Frequently Asked Questions (FAQs)
This refers to a period after an uptrend is temporarily rejected, allowing investors to add onto their positions anticipating the uptrend’s continuation.
Key industry research and reports point to a potential bottoming out level after Bitcoin regained from $54,000 to $65,000 this week.
Currently support at $64,000 holds the ground but if volatility increases, a drop to $60,000 is possible and still within a healthy retracement. Below this level, the outlook could drastically change from bearish to bullish.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
