Analyst points out two Bitcoin scenarios at critical level bullish or bearish for BTC
Bitcoin (BTC) is currently at a crucial point in the ever-changing cryptocurrency market. Recent tests of previous range lows have sparked speculation about its next move. A well-known crypto analyst, CrypNuevo, has provided insights into possible scenarios.
On July 14, 2024, CrypNuevo took to X to offer a detailed analysis of Bitcoin’s current position. The analyst outlined two potential scenarios that could unfold in the coming days or weeks.
According to CrypNuevo, Bitcoin has recently reached the previous range lows. The question now is whether this represents a retest of resistance before a further decline or if Bitcoin will reclaim its previous trading range. The leading cryptocurrency held onto the last range for four months before dropping to $53,540.
CrypNuevo has identified two key liquidation zones that traders should pay attention to. The first is at $68,000, where a significant number of liquidations could occur if Bitcoin reclaims its previous range. However, the analyst notes that the price needs to first reclaim the range, as seen in previous market behavior.
The second liquidation zone is at $52,000. This level could potentially serve as a bottom if Bitcoin hasn’t reached its lowest point yet. Interestingly, this level also aligns with the 50-week exponential moving average (EMA), which adds to its significance as a potential support level.
In the bullish scenario, CrypNuevo suggests that if Bitcoin reclaims the range lows and tests them as support, the next logical move would be a push towards the range highs. The analyst points out an Open Interest (OI) gap between $72,000 and $73,500, describing it as an interesting liquidity area that the price has avoided visiting for some time.
On the other hand, in the bearish scenario, Bitcoin would be rejected at the range lows for several days. The analyst suggests that an ideal trigger for this scenario would be a false breakout above range lows, followed by an immediate retracement below resistance.
While technical analysis provides valuable insights, it’s important to consider broader economic factors and external events that could influence Bitcoin’s price. Recent Consumer Price Index (CPI) data coming in 0.1% below expectations could potentially favor a Bitcoin recovery. Additionally, the recent assassination attempt on Donald Trump, a known Bitcoin supporter and confirmed speaker at the upcoming Bitcoin 2024 conference, could have unforeseen impacts on market sentiment.
As Bitcoin tests critical support levels, the cryptocurrency community remains on high alert. Whether it will reclaim its previous range or continue its downward trajectory is yet to be seen. Traders and investors should stay informed and cautious as the market determines its next move.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative, and your capital is at risk.