Bitcoin Price Slides Continue: Predictions Point to a Drop to $60,000; Potential Bull Run Ahead
Summary:
Bitcoin (BTC) value continuously diminishes, currently at $62,130, indicating an overall decline of 7.65% over the past week. Market analysts project a further slide in price, potentially hitting $60,000. The decline trend aligns with the 200-day exponential moving average. Analyst Teddy Cleps anticipates a fall to $61,000, an essential level based on historical support and matching the 21-weekly EMA. Meanwhile, Galaxy Digital's Michael Novogratz and Markus Thielen of 10x Research make projections of $55,000 and $50,000 respectively. The ongoing descent appears like a bull flag pattern, hinting a possible rally to a new high at $88,000. Bitcoin's daily relative strength index being the most oversold since August 2023 could lead to a recovery period, offering momentum towards the expected bull flag target.
There's been a decrease in Bitcoin's (BTC) value as it plunged 1.5% during the day and 7.65% over the week, reaching $62,130 on June 24. The forecast for recovery doesn't look promising with several indications pointing towards further price reductions. The question arises whether Bitcoin will take a fall and hit the $60,000 mark next.
Ever since the peak of its bull run in March 2024, reaching a new highest record of approximately $74,000, Bitcoin has been fluctuating within a downward parallel channel. Each resistance test of the upper trendline results in a fall towards the lower trendline, only to bounce back once it hits it. Bitcoin's price is following a similar trend pattern on June 24, regressing from approx. $72,000, hit two weeks prior. The BTC/USD pair is making its way towards the parallel's lower trendline, aligning with the vital support level of $60,000.
Interestingly, Bitcoin's estimated drop to $60,000 is proximate to its 200-day exponential moving average at roughly $58,000, raising the odds of Bitcoin maneuvering towards the $58,000-60,000 spectrum in July.
Teddy Cleps, an independent market analyst, projects a fall to $61,000, as it is not only the 21-weekly EMA but also a significant historical support. Cleps states that each correction since the Bitcoin bull run's inception has hit the 21-weekly EMA and rebounded, predicting $61,000 as the prospective bottom if this pattern continues.
Michael Novogratz, founder of Galaxy Digital Holdings Ltd, back in May had forecasted Bitcoin's continuous fluctuation within the $55,000-75,000 spectrum throughout Q2 2024, which is proving accurate. He expects fresh market events to drive the prices up post the stagnation due to Bitcoin's halving and the launch of the spot U.S. Bitcoin ETFs. The current market pausing, according to Novogratz, is due to strong economic signs and diminishing optimism over the Federal Reserve's rate reductions. He predicts this phase to continue until there's an economic slowdown or post-election regulatory clarity.
Contradicting Novogratz, Markus Thielen, founder of 10x Research, expects Bitcoin to break its phases of fluctuations and fall to $50,000 due to a potential double-top pattern. This pattern forms when the price hits two similar peaks with a slight dip in the middle and maintains support above the "neckline". The pattern concludes when the price falls below the neckline, potentially falling as much as the distance between the peaks and the neckline.
Concurrently, the descending channel range is reminiscent of the bull flag pattern, suggesting a potential price rally that could lead to a new record high of $88,000 in July or August if the trend follows through. Coupled with Bitcoin's most oversold daily relative strength index since August 2023, the chances of reaching the bull flag target are enhanced, signaling a possible recovery period.
Published At
6/24/2024 12:07:23 PM
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