Cryptocurrency expert establishes bearish Bitcoin threshold
Bitcoin (BTC) recently departed from a four-month price band after plummeting from $60,000 to a low of $53,540. Now, a leading cryptocurrency analyst suggests that BTC might revisit these lows and potentially dip further in a bearish scenario.
The analysis was shared by CrypNuevo in their “Sunday Update” thread on X, emphasizing critical technical indicators. According to CrypNuevo, “The next significant downside level to watch is precisely $51.7k.”
This price point aligns with liquidation thresholds established after the drop to $53,540, and coincides with the 50-week exponential moving average, a robust indicator of price and trend.
CrypNuevo typically uses candlestick wicks as indicators of market imbalances. Historically, Bitcoin tends to resolve these imbalances by revisiting 50% or 100% of the wick levels before confirming a reversal. CrypNuevo expects BTC to fill the wick between $55,200 and $53,540, highlighting a strategy that has shown notable accuracy in past analyses.
However, the outlook remains cautious due to bearish macroeconomic signals, particularly from the United States Consumer Price Index (CPI), which could potentially drive Bitcoin lower.
“We might first see a decline to fill at least 50% of the wick. A bounce is probable from the wick fill, but dropping below the 100% wick level would mean $51.7k is likely to hold,” CrypNuevo cautioned.
Looking at potential upside resistance, CrypNuevo anticipates that weaker-than-expected CPI data could fuel a rally back towards $60,000. Nonetheless, the analyst believes this level poses significant resistance and may not yield to an initial attempt.
“While there are signs of upward liquidation forming, until we reclaim $60k (previous range lows now acting as strong resistance), it’s not a target for me. Step by step,” remarked CrypNuevo.
Breaking through the $60,000 barrier would return Bitcoin to its four-month range, thus marking the recent crash as an aberration. Finbold also highlighted this as a pivotal level to monitor in the coming week while favoring potential downward movement.
Investors are advised to exercise caution and avoid excessive leverage amidst ongoing developments in July.
Disclaimer: The information provided in this article should not be construed as investment advice. Investing in cryptocurrencies carries inherent risks, and capital is always at risk.