Bitcoin Seeks $69,000 Support Amid Analyst Warnings; ETH ETF Decision Could Influence BTC Targets
Summary:
Bitcoin (BTC) is seeking to secure $69,000 support on May 22 as analysts grow concerned due to a decrease from local highs. Material Indicators mentioned the need for a resistance/support flip at $69,000 but warned of a clear down signal. John Bollinger also expressed his concerns. Predictions of a wider BTC price retracement have already been made with suggestions of a descent back to $60,000. The upcoming decision on U.S. spot Ether (ETH) exchange-traded funds could potentially influence Bitcoin targets. It could lead to Bitcoin re-engaging in price discovery and potentially reaching $80,000.
Bitcoin (BTC) was aiming to secure support at $69,000 on May 22, after a dip from recent peaks led to concern among analysts. BTC/USD 4-hour chart. Source: TradingViewBollinger highlights potential for BTC price "pullback"
Data from Cointelegraph Markets Pro and TradingView indicated a softened BTC price movement, which twice came close to 2021's previous highest levels. At the time of writing, BTC remained above $69,000, a critical point according to some.
"Support at $69k must be maintained for a potential R/S flip at the prior ATH to be validated," stated trading platform Material Indicators partly in its recent examination of X (formerly Twitter).
Material Indicators was alluding to a potential resistance/support reversal at $69,000. However, it also indicated that one of its unique trading instruments exhibited a "distinct" downward trend on daily time frames.
"For me, to invalidate this, we would need a surge beyond $71.5k," it further indicated.
BTC/USD chart with trading signals. Source: Material Indicators/X
Others also expressed concern about an escalating likelihood of failure spoiling Bitcoin bulls' latest bid to surpass resistance levels.
John Bollinger, the inventor of the Bollinger Bands volatility measure, expressed worry regarding developments that were unsettling.
"I'm uneasy about the two-bar reversal at the upper Bollinger Band for $btcusd," he updated X followers on the day. "This points at a consolidation or a pullback. I'm not bearish overall, just short-term concerned."
BTC/USD chart with Bollinger Bands data. Source: John Bollinger/X
As reported by Cointelegraph, predictions of a broader BTC price retraction have already been made by the trading community. Well-known trader and commentator, Credible Crypto, has been one of the loudest voices calling for a descent back to $60,000 or lower.
A recently uploaded chart on X emphasised probable support being under the commencement point of what Credible Crypto termed an "impulsive move."
BTC/USD chart. Source: Credible Crypto/X
Ethereum ETF could act as silver lining for Bitcoin
This week's United States verdict on spot Ether (ETH) exchange-traded funds (ETFs) determined probable Bitcoin targets for Filbfilb, the co-founder of trading suite Decentrader.
Related: BlackRock’s Bitcoin ETF experiences 6-week inflow peak amidst the BTC rally at the start of the week
Filbfilb updated X followers that the worst-case scenario, an ETF rejection by regulators, would just revert the market to its previous position.
"If the ETH ETF gets rejected, we simply go back to last week's position," he finalised.
On the flip side, Filbfilb indicated that a favourable ETF decision could propel Bitcoin to reengage in price discovery and potentially reach $80,000.
On May 21, ETH/BTC reached its highest level since mid-March.
ETH/BTC 1-day chart. Source: TradingView
This article does not provide investment counsel or suggestions. Every investment and trading activity involves risk, and readers ought to conduct their own investigation before making any decisions.
Published At
5/22/2024 11:46:50 AM
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