Bitcoin Price Prediction: Breaking Below $60k Could Lead Bitcoin to $50k, While $70k Remains a Distant Goal
As Bitcoin and Ethereum continue to follow historical patterns, traders and investors are advised to keep a close eye on upcoming interest rate decisions and their potential impact on the market. The direction of interest rates, whether it be a 25 or 50 basis point cut, will play a crucial role in shaping market sentiment in the coming weeks.
Recently, new inflation data was released, revealing a U.S. Consumer Price Index (CPI) inflation rate of 2.9% year-over-year. While slightly below the revised expectation of 3%, the figure was close enough to market predictions to keep the market relatively stable, with no major price fluctuations observed.
Bitcoin’s Technical Analysis:
According to analyst Josh of Crypto World, Bitcoin is currently in a bearish trend on the 4-day timeframe, with lower highs and lower lows forming on the chart. The Super Trend indicator also signals a bearish outlook. However, Bitcoin remains within a descending broadening wedge pattern on the 2-day chart. A breakout above the resistance level of $68,500 could set up a bullish price target, but for now, the trend remains bearish.
Short-Term Support and Resistance Levels:
Bitcoin is facing resistance at various levels, including $60,000-$61,000, $63,000, and $67,000-$68,300. On the support side, key levels include $57,500, $56,000-$57,000, and a support zone between $51,000-$53,000.
Potential Short-Term Moves:
Interestingly, Bitcoin’s current price action mirrors the patterns seen during the March 2020 crash. If history repeats itself, we may see slight bullish relief in the next few days, followed by some choppy sideways action.
Liquidity levels are also crucial in this context, with significant liquidity around the $62,000 mark, specifically between $61,800 and $62,200. On the downside, liquidity is concentrated around $57,500 and $56,500. These liquidity zones could act as magnets for price action, influencing short-term movements.
In conclusion, breaking below $60,000 could lead Bitcoin to $50,000, while $70,000 remains a distant goal. Traders and investors should remain vigilant and adapt their strategies accordingly to navigate the current market conditions.
