Analyst Outlines Two Bitcoin Scenarios to Monitor in the Coming Week
Currently, Bitcoin (BTC) investors are eagerly anticipating the cryptocurrency’s next move, hoping it will continue its recent bullish momentum and break through new resistance levels. Adding to this optimism, a crypto analyst known as Thescalpingpro highlighted in a recent post on July 7th that Bitcoin’s weekly closing price holds significant importance. This follows the cryptocurrency’s breach below a critical range after 125 days of consolidation.
Thescalpingpro pointed out that Bitcoin had been stuck in a range for over four months, fluctuating between highs near $66,000 and lows around $33,000. This period was marked by considerable volatility but lacked a decisive breakout until now.
The analyst emphasized that Bitcoin’s recent drop below this prolonged consolidation range suggests potential for a substantial market movement. Historically, such breakouts have often resulted in follow-through movements in the breakout direction.
Thescalpingpro outlined two potential scenarios for Bitcoin’s price trajectory going forward. In the bullish scenario, reclaiming the $60,000 level by the weekly close would indicate that the recent breakdown was a false alarm. This could propel Bitcoin towards the higher end of its previous trading range, potentially surpassing $70,000. Such a move would signify strong bullish momentum and a swift recovery from the recent dip.
Conversely, in the bearish scenario, failing to hold above $60,000 for the week would suggest a continuation of the downward trend. This could lead to a retracement towards the mid-range level of approximately $44,233 before any potential upward movement. Currently, the bias leans slightly towards the downside as Bitcoin remains below the crucial $60,000 threshold.
The analyst’s analysis showed that the range breakout was confined between $66,000 (the upper boundary) and around $44,233 (the mid-range level). Despite an initial breakout above the range, the market failed to sustain it, resulting in a return to the consolidation phase. The recent breakdown below the consolidation range prompted this updated assessment.
Regarding the significance of the $60,000 level, Thescalpingpro noted that market sentiment currently leans towards caution as long as Bitcoin trades below this threshold. However, a successful reclaim of this level could quickly reverse sentiment, potentially driving Bitcoin’s price to new highs.
It’s important to note that the broader market consensus also views the $60,000 mark as pivotal. For example, according to Finbold, analyst Ali Martinez highlighted that for Bitcoin to resume its upward trajectory, it must reclaim and hold above $61,000.
As of the latest updates, Bitcoin is trading at $56,849, having struggled to maintain prices above $57,000.
Disclaimer: The information provided in this article should not be construed as investment advice. Investing in cryptocurrencies carries inherent risks, and individuals should exercise caution and do their own research before making investment decisions.