The recent downturn in Bitcoin’s price has sparked a significant sell-off across the cryptocurrency market, and the situation shows no signs of easing. Currently trading below $90,000, the implications for the leading cryptocurrency will hinge on its next move. The ongoing battle between bullish and bearish sentiments means either outcome remains feasible. With critical levels at stake, a crypto analyst has evaluated the potential consequences of each path.
Potential Outcomes for Bitcoin Price
Crypto analyst HAMED_AZ examines the Bitcoin price chart, highlighting the current trend and possible scenarios leading to either a recovery or a downturn. The analyst notes that Bitcoin is currently in a corrective phase, which initiated from its all-time high of $126,000, during which it has lost over $35,000 in value.
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This corrective phase has constricted the cryptocurrency into a narrow range, restricted between $84,000 and $94,000. Historically, these levels have acted as significant points of support and resistance, making them crucial for determining the next move.
Continued trading within this range means Bitcoin is unlikely to experience any major shifts. A significant move is anticipated if either of these support or resistance levels is breached, influenced by which side gains momentum.
Bullish or Bearish Scenarios to Monitor
In a bullish scenario, if Bitcoin bulls manage to overcome the resistance at $94,000, which has been steadily building, there is potential for a significant upward move. If this occurs, it may push Bitcoin to retest this resistance level.
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Should the breakout be validated and the resistance collapse, the analyst posits that Bitcoin could rise above the psychological barrier of $100,000, with a target reaching as high as $108,000 before the momentum wanes.
Conversely, if the bears gain the upper hand and manage to drive the price below $84,000, which acted as a key support during previous downturns, this level becomes critical to hold. Failure to maintain this support could result in a drop, potentially down to $72,000.
Featured image by Dall.E, chart from TradingView.com
