Bitcoin Price Analysis: Possible Impending BTC Crash
Bitcoin is currently trading at $87,500, reflecting a 14.95% rise from this month’s low. Technical analysis shows resistance at $100,000 and suggests potential bearish movements. Critical economic data and market activities may impact future price movements.
The current Bitcoin price is stable at $87,500, maintaining a 14.95% increase from its recent low of $76,425 recorded earlier this month. This analysis investigates whether Bitcoin has rebounded and what investors might expect in the near future.
Examining the daily chart reveals that Bitcoin has shown a gradual uptrend over the past fortnight. Following a dip to $76,427, the price has since rebounded to $87,500. Currently, Bitcoin faces crucial resistance against a historic low from January 13th while forming a potential double-top pattern at the $108,600 mark, which is typically considered bearish. A break-and-retest from this level indicates a possible further decline.
Moreover, technical indicators suggest the formation of a rising wedge, characterized by two converging trendlines, which typically points to a bearish breakdown when they meet. While the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have improved, the Bollinger Bands (BB) Trend indicator indicates a lack of strength in the current price action, putting Bitcoin at risk of a bearish decline with the next support level appearing at $76,427.
Confirmation of Bitcoin’s upward momentum will occur if the price surpasses the crucial resistance level of $100,000, approximately 15% above its current standing. Overcoming this level would negate the break-and-retest pattern and likely attract investors motivated by FOMO (Fear of Missing Out). With a surge to $100,000, Bitcoin’s advance could push it towards considered milestones of $110,000 and $120,000.
Several catalysts could contribute to this anticipated Bitcoin rally, including forthcoming US PCE data, impending tariffs, and upcoming nonfarm payroll data. Additionally, reactions to an options expiry event valued over $15 billion occurring on Friday will be pivotal to market sentiment and price movement.
In summary, Bitcoin currently holds steady at $87,500, up from recent lows, but faces significant resistance levels ahead. Technical analyses suggest a potential bearish breakdown may occur without a confirmed breakout above $100,000. Investors should remain vigilant regarding external economic indicators and upcoming events that may influence Bitcoin’s trajectory.
Original Source: www.banklesstimes.com
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