Bitcoin experienced a sharp decline on Monday, falling below $50,000, but has made a rapid recovery in the last two days, rising above $60,000.
Now, while questions are on minds such as “Will Bitcoin continue its rise? Or was this rise a trap? Will the price fall again?”, analysts shared their expectations.
Speaking to Coindeks, FxPro senior market analyst Alex Kuptsikevich said that Bitcoin bulls are gaining momentum but they need to pass $61,800 clearly for the rally to be confirmed.
“A weekly close above $61,800 in Bitcoin would attract buyers and could prompt its price to rally rapidly toward $67,000.
However, failure to pass this level and a possible pullback would see the price return to its July and August lows around $55,500.
“In addition, $61,800 marks the point where the 50- and 200-day simple moving averages meet, and this level appears to be a critical level for the continuation of the rise.”
Bitcoin's Rise Depends on Geopolitical Issues and the FED!
Apart from Kuptsikevich, analysts from investment consultancy firm Two Prime also announced their BTC expectations. In a note sent to clients, Two Prime analysts stated that they expect an increase in Bitcoin, and said that the rise in BTC depends on geopolitical issues and FED policy.
“We continue to watch $54,000 as a major support area for Bitcoin, followed by $50,000.
So far these levels have worked well and every time Bitcoin has reached this area there has been persistent buying demand.
“We now wait to see if the Israel/Iran conflict escalates and if the US government takes steps to reduce risks, both in the geopolitical arena and in the Fed's monetary policy, for Bitcoin to rally.”
*This is not investment advice.