Bitcoin’s price has tested resistance levels around $68,000 after a strong rally, leaving analysts divided. So what’s next for Bitcoin? FIND OUT!!
Bitcoin’s Technical Analysis and Resistance Levels
Current Price Movements:
Bitcoin (BTC) is seeing a lot of price changes, currently around $67,000. After a strong pressure that pushed Bitcoin’s price above $67,500, Bitcoin is now struggling with a significant resistance level at $68,000.
This level has proven difficult for buyers, who are trying to push the price higher despite the market’s fluctuations.
Key Resistance Levels:
- $68,800 to $70,000: If Bitcoin keeps its momentum above $68,000, these are the next major resistance areas it might encounter.
- $73,777: A strong resistance level that could come into play if Bitcoin continues to rise beyond $70,000.
Price Analysis With Technical Indicators:
The Stablecoin Supply Ratio (SSR) oscillator is shows a positive sign for Bitcoin. The low dominance of stablecoins suggests there is potential for Bitcoin to go up, as there is less selling pressure from stablecoin holders.
Although the SSR is below its 200-period Simple Moving Average (SMA), it is still above the oversold territory, meaning there is room for growth in price.
On the 100-hourly SMA Bitcoin’s price recently fell below this short-term moving average, suggesting a possible short-term bearish trend.
Also The 20-day EMA is turning upwards, supporting a bullish view. The EMA often acts as a support level, and if Bitcoin rebounds from this level, it could increase the chances of a rally.
The RSI is currently in positive zones. This momentum indicator measures the speed and change of price movements. An RSI above 50 indicates bullish momentum, which aligns with the current upward trend in Bitcoin’s price.
Possible Breakout and Pullback Scenarios
1. Bullish Breakout Scenario
If Bitcoin manages to break through the $68,000 resistance level, it could lead to a rise in price and the next targets would be $70,000.
Continued buying pressure might push the price towards the $73,777 resistance level, where further analysis would be needed to see if the price can keep rising.
2. Bearish Pullback Scenario:
On the other hand, if Bitcoin fails to surpass the $68,000 resistance, it could lead to a pullback.
A drop below $66,500 would be an early warning of further dump. If the price falls past $65,900, Bitcoin might aim for deeper support levels at $59,600 or even $56,552, indicating a more substantial bearish correction.
So Bitcoin’s price is at an important point, with $67,000-$68,000 being the key level to watch. Bitcoin’s breaks out to new highs or pullback will depend on investor sentiment in the coming days.
See Also: Bitcoins Price Drops as Tons Price Surges By An Amazing 11%
Market Factors Influencing Bitcoin’s Price
Bitcoin’s price is influenced by so many external factors. Key factors include the inflow of funds into Bitcoin ETFs, activities by Tether, and other traditional assets like silver.
ETFs Inflows and it’s Effect
Bitcoin Exchange-Traded Funds (ETFs) offer a regulated way for both institutional and retail traders to invest in Bitcoin without needing to own the cryptocurrency directly.
Recently, Bitcoin ETFs have saw huge net inflows, with more than $200 million pouring in over the past two weeks. This rise in inflows shows a growing interest in Bitcoin.
ETFs improve Bitcoin’s liquidity and accessibility, drawing more investors into the market. The steady influx of capital from these ETFs helps to push Bitcoin’s price and can reduce its usual volatility, as consistent demand would stabilize price.
Tether’s Recent Activities and it’s Effects on Bitcoin’s Price
Tether (USDT), the most widely used stablecoin, issued an additional $1 billion in USDT and this increase in Tether’s supply means more capital is available for crypto trading, facilitating more trading activities and demand for Bitcoin.
Also, Tether’s decision to invest 15% of its net profits in Bitcoin shows a huge belief in Bitcoin’s potential, positively influencing market sentiment. This can create higher buying pressure on Bitcoin, leading to an increase in its price.
See Also: Bitcoin Price Dump Sends A Serious Warning
Comparisons with Other Assets: Silver
Comparing Bitcoin with traditional assets like silver helps provide insights for its market performance.
On the long run, Bitcoin has outperformed silver. For example, while silver has increased by about 35% year-to-date, Bitcoin has surged by 58%. Over the past year, Bitcoin’s nearly 150% gain significantly exceeds silver’s 34% rise.
This show Bitcoin’s rapid growth, which attracts investors looking for better returns, despite the risks involved.
However, this also shows Bitcoin experiences larger volatility compared to the relatively stable performance of commodities like silver, making it a more profitable investment.
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