As the Bitcoin price shows signs of recovery from its low of $102,000, speculation intensifies about its potential trajectory. Currently, opinions are divided; some anticipate a rally akin to the one seen during COVID, while others suggest we may be entering a bear market. In this context, a pseudonymous crypto analyst has outlined their expectations for Bitcoin’s price movements based on its performance relative to the midpoint level.
What If The Bitcoin Price Remains Above the Midpoint?
At present, the midpoint line plays a crucial role in the behavior of the Bitcoin price. This level is strategically located between the significant support and resistance observed over the past weeks, positioning the midpoint around $111,994 as a key indicator for the cryptocurrency’s next moves.
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According to the crypto analyst, if the Bitcoin price can maintain its position above the midpoint, the next significant resistance to overcome is at the 0.75 Fibonacci level, roughly translating to $117,605. This is where bears could apply considerable pressure, particularly as trends appear bearish in lower time frames.
On the other hand, maintaining above this midpoint suggests that the trend continues to be bullish and favors buyers. This could initiate a confirmation for a rally and potentially pave the way for new all-time highs. “A V-shaped recovery leading straight to the highs would be maximum pain following such a significant drop,” the analyst remarked.
Bears Could Still Reclaim Control
While the Bitcoin price remaining above the midpoint appears bullish, any breakdown at this level carries significantly bearish implications. The analyst indicates that if the midpoint level is lost, Bitcoin’s price could be susceptible to retracement.
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This potential retracement refers to the wick created during the flash crash last Friday, when the Bitcoin price plummeted to $102,000. The market is still struggling to recover from that downturn, despite Bitcoin currently holding above $110,000. Another drop toward $102,000 could prove disastrous for altcoins.
Supporting the bearish perspective, another crypto analyst has also noted signs of distribution in Bitcoin’s price behavior. This raises the possibility that Bitcoin could establish a reversal pattern, continuing its downtrend. The analyst predicts that the price may ultimately dip below $100,000 before finding support.
Featured image created with Dall.E, chart from Tradingview.com
