Trader predicts $60k-$70k Range after consolidation
Bitcoin (BTC), the largest cryptocurrency in the market, has recently broken its consolidation below the $30,000 level, and is holding steady at $30,200. This price increase marks the end of an extended period of crypto winter and the beginning of a new uptrend for the cryptocurrency industry.
Bitcoin is currently trading at $30,200, experiencing a slight decline of 0.8% over the past 24 hours, despite recently hitting its new annual high of $30,900 on strong bullish momentum.
With the bear market seemingly behind us, there is a growing expectation among investors and cryptocurrency enthusiasts that BTC will continue to climb and possibly reach new all-time highs. However, uncertainty remains as to whether Bitcoin is currently in a new phase of accumulation to reach higher levels or whether the support floors can withstand a potential pullback.
Predict the next move for Bitcoin
According to a merchant known as “Alan,“Bitcoin is undergoing a significant shift, describing the current trading levels as “platform I” and “platform II.” Currently, Bitcoin is transitioning from the first platform, which is between $30,000 and $40,000, to the second platform, which ranges between $60,000 and $70,000.
The MACD indicator, also known as the D3 chart, is a widely used technical analysis tool for identifying long-term trends in the market. This type of chart relies on a longer time frame to analyze market trends, as for trader Alan, based on the MACD bullish cross on the D3 chart, this bullish signal has triggered another bull run for Bitcoin, indicating that the cryptocurrency may be on the way to new higher heights.
Also, Adam Back, CEO of Blockstream, a blockchain technology company recently noted that Bitcoin’s price has increased significantly in the first quarter of 2023. From December 31, 2022 to March 31, 2023, the price of Bitcoin increased by approximately 70%, rising from $16.6k to $28k.
For Back, if this growth rate were to continue, Bitcoin’s price could reach $48k by June, $82k by September, and a staggering $140k by December. But if the goal is to reach a price of $100,000 by the end of the year, the growth rate will have to fall from 70% to 53% for the second, third and fourth quarters of the year. This would represent a more moderate growth, but one that is still significant for Bitcoin.
Risks are approaching in the near future for BTC
According to Colin Wu, 30,500 BTC options with a Put Call Ratio of 0.99, a Max Pain Point of $29,000, and a Notional Value of $0.93B are about to expire. A ratio of 0.99 suggests that there are slightly more puts than calls, which could indicate that investors are bearish on Bitcoin’s near-term outlook.
The maximum pain point of $29,000 could exert downward pressure on BTC’s price when the options expire. This is because option holders may try to push the price towards this level to limit their losses.
If Bitcoin’s price experiences a decline, there is a short-term support level of $29,500 for the cryptocurrency. However, if this support level does not hold, there is a potential for Bitcoin to fall further towards the $28,300 support level.
Featured image from Unsplash, chart from TradingView.com
