Analyst Outlines Two Bitcoin Scenarios to Monitor in the Coming Week
Currently, Bitcoin (BTC) investors are eagerly anticipating the cryptocurrency to extend its recent upward momentum, aiming to surpass key resistance levels. Amidst this optimism, a crypto analyst known as Thescalpingpro discussed in a recent post dated July 7 the critical importance of Bitcoin’s weekly closing price. This follows the cryptocurrency’s breakdown below a significant trading range after a prolonged consolidation period spanning 125 days.
Thescalpingpro highlighted that Bitcoin had been trading within a range for over four months, oscillating between approximately $66,000 as its peak and around $33,000 at its trough. This period was marked by notable volatility but lacked a definitive breakout until now.
According to the analyst, Bitcoin’s recent breach below this long-standing consolidation range suggests potential for a substantial price movement. Historically, Bitcoin tends to follow through in the direction of a breakout once it emerges from a consolidation phase.
The analyst outlined two potential scenarios for Bitcoin’s price trajectory moving forward. In a bullish scenario, reclaiming the $60,000 level by the weekly close would invalidate the recent breakdown, signaling a potential surge towards previous highs, possibly exceeding $70,000. This would indicate robust bullish momentum and a swift recovery from the recent downturn.
Conversely, in a bearish scenario, a weekly close below $60,000 would indicate a continuation of the bearish trend. This could result in a retracement towards the mid-range level of approximately $44,233 before any further upward movement. Currently, the market bias slightly favors the downside as Bitcoin trades below the crucial $60,000 mark.
The analyst’s analysis pinpointed the range between $66,000 (the upper boundary) and approximately $44,233 (the mid-range level) as crucial price points where significant market movements have been observed.
Additionally, Thescalpingpro emphasized the significance of the $60,000 level, stating that Bitcoin’s position below this mark suggests a bearish tilt in sentiment. However, reclaiming this level could swiftly reverse sentiment and propel prices to new highs.
It’s important to note that market consensus identifies the $60,000 level as a critical threshold for Bitcoin’s future price movements. Ali Martinez, as reported by Finbold, highlighted that Bitcoin’s resurgence into a bullish trajectory hinges on reclaiming and maintaining the $61,000 position.
At the time of reporting, Bitcoin was trading at $56,849, struggling to sustain prices above $57,000.
**Disclaimer**: This article does not provide investment advice. Investing in cryptocurrencies carries inherent risks, and investors should conduct their own research and consider their risk tolerance before making investment decisions.
