Since last week, there’s been a focus on Bitcoin’s price action. Amid rising geopolitical tensions, Bitcoin faced a setback and is now teetering on the edge of breaking below the crucial $60K mark. But how far could Bitcoin fall? Analyst Virtual Bacon identified key levels for potential corrections: around $62,500 and between $58,800 to $60,000.
In the charts, the critical support and resistance levels are the 200-day EMA and the 21-week EMA. The bull market support band sits between $61,000 and $62,500, and while some may think the market has turned bearish after breaking below this band, it’s important to remember that these signals are based on weekly candles.
Ideally, the analyst suggests waiting for two weekly candle closes to confirm any trends. If Bitcoin closes above $63,000 by the end of the week, it could indicate a bullish reversal, while a wick into the support band followed by a close above could also be a positive sign. Therefore, the long-term weekly support has not yet been definitively broken, and further monitoring is necessary.
The analyst explained the importance of the Bitcoin bull market support band and the 200-day exponential moving average (EMA), both around $60,000. This includes previous support and resistance levels, particularly around the $59,900 mark. He said that the recent three-candle pattern is a significant consolidation signal, hinting at a potential price reactions within this range. The analyst believes this area presents a good opportunity for buying Bitcoin and altcoins, as altcoins typically follow Bitcoin’s price movements.
The market has been in a downtrend since March, characterized by lower highs and lower lows. However, recent price action shows signs of a potential shift, with the possibility of forming a new uptrend. The analyst suggests that to confirm this, Bitcoin needs to make higher highs and higher lows moving forward.
If Bitcoin closes below $58,000 on a daily basis, or below $50,000 weekly, it could indicate trouble for the expected uptrend. The analyst is starting to buy within the $59,000 to mid-$50,000 range, suggesting that this area provides a favorable risk-to-reward ratio for potential gains.
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