Analyst highlights two possible Bitcoin scenarios at critical level Long or short
Bitcoin (BTC) is currently facing a crucial moment in the rapidly evolving cryptocurrency market. The leading digital asset recently tested previous range lows, sparking speculation about its future direction. To shed light on possible scenarios, a prominent crypto analyst, CrypNuevo, provided a detailed analysis on X.
CrypNuevo pointed out two distinct scenarios that could unfold in the coming days or weeks. Bitcoin has reached the previous range lows, and now the question is whether this represents a resistance retest before a further decline or if Bitcoin will reclaim its previous trading range. The cryptocurrency held onto the range for four months before dropping to $53,540.
CrypNuevo identified two key liquidation zones that traders should closely monitor. The first is at $68,000, where a significant number of liquidations could occur if Bitcoin recovers its previous range. However, the analyst emphasized that the price needs to first reclaim the range, as seen in previous market behavior. The second liquidation zone is at $52,000, which could potentially serve as a bottom if Bitcoin hasn’t reached its lowest point yet. This level also aligns with the 50-week exponential moving average (EMA), making it a significant 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 also highlights 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 need to be rejected at the range lows for several days. An ideal trigger for this scenario would be a false breakout above the range lows, followed by an immediate retracement below resistance.
While technical analysis provides valuable insights, it’s important to consider macroeconomic factors and external events that could impact Bitcoin’s price. Recent Consumer Price Index (CPI) data coming in 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 effects on market sentiment.
As Bitcoin tests critical support levels, the cryptocurrency community remains on high alert. Whether Bitcoin will reclaim its previous range or continue its downward trajectory is yet to be seen. Traders and investors should stay informed and exercise caution as the market determines its next move.
Disclaimer: The content on this site should not be considered investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.
