Bitcoin’s recent surge to $97,000 ended with a rejection, leaving many wondering what’s next for the king of crypto. Several analysts have weighed in, offering insights based on different technical indicators.
Technical Indicators Point to Potential Downturn
Technical expert Tony Severino used the LMACD indicator across multiple Bitcoin timeframes (daily, weekly, monthly). His analysis suggests a precarious situation. A bearish daily momentum could trigger a cascade effect: the weekly LMACD would dip below zero, dragging the monthly LMACD bearish as well. This alignment of bearish signals across different timeframes could lead to a significant price drop.
However, there’s a bullish possibility. If the daily LMACD diverges upwards, it could prevent the bearish crossover and maintain a bullish outlook. Despite this possibility, Severino leans towards a more likely price decline, primarily due to the dominant bearish signal from the monthly LMACD. He believes this monthly indicator is strong enough to influence the other timeframes. The extent of this potential drop remains unstated.
Other Analysts’ Predictions
Other analysts share concerns about a potential Bitcoin price drop. Ali Martinez, using the TD Sequential indicator, sees a sell signal and predicts a pullback. He suggests that breaking below the $94,765 support could send Bitcoin down to $90,000 or even $86,000.
Rekt Capital looked at historical price action, suggesting a potential repeat of last year’s pattern. This would involve a series of rejections and support holds before a final breakout to new all-time highs. However, this scenario requires specific price levels to be met and held.
Titan of Crypto highlighted a key support confluence around $95,423. A strong reaction from this level would signal the upward trend remains intact. Failure to hold this level, however, could initiate a downtrend.
Current Situation
At the time of writing, Bitcoin is trading around $94,700, slightly down in the last 24 hours. The conflicting signals from various analysts and indicators highlight the uncertainty surrounding Bitcoin’s immediate future.
