Bitcoin, the world's largest cryptocurrency, exceeded the $60,000 mark once again this week, after falling below the $60,000 level for the first time since May 3.
Despite this recovery, chart analysts see no buying signals and suggest that Bitcoin could begin another decline at current levels that would be more “damaging.” “Moderation has continued since March and trading can be considered under pressure below the $66,000 resistance,” Oppenheimer analyst Ari Wald said, referring to BTC’s 50-day moving average.
Bitcoin has been stuck in a narrow range between $60,000 and $70,000 since mid-March, when it hit an all-time high. Current market conditions are characterized by a lack of short-term catalysts, low demand for Bitcoin ETFs, and miners selling their Bitcoin holdings.
Wald added that if Bitcoin fails to hold $57,000, $49,000 will be the next significant downside level. David Keller, chief market strategist at StockCharts.com, echoed this sentiment, suggesting that Bitcoin's next level is around $58,000, with the potential decline to be between $50,000 and $52,000.
Keller noted that buyers typically come in around $60,000, and since BTC usually finds support in large, round numbers, it is reasonable to expect Bitcoin price to rise once again. RJ O'Brien's Tom Fitzpatrick identified major Bitcoin support at $56,527 and a potential double-top neckline, which is a bearish M-shaped chart formation consisting of two tops on either side of a moderate decline.
“Below here would indicate another decline of at least 22%, with the possibility of as much as 29%,” Fitzpatrick said in a note to investors. However, Wald emphasized the strength of the current $57,500 support level and the 200-day moving average. “The double top isn't complete until the neckline is breached,” he said. Until then, “I'm always with the trend, so I assume the rising 200-day average holds. The upward move on the NASDAQ-100 also shows that risk tolerance remains positive.” said.
*This is not investment advice.
