bitcoin, the undisputed king of cryptocurrencies, is in a tug of war between bullish whispers and bearish roars. While some analysts point to technical indicators that point to rising prices, others warn of potential dangers lurking beneath the surface.
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Bulls See Flags and Bullish Futures
Technical analysts are a curious breed. They speak in a language of charts, patterns and indicators, deciphering cryptic market movements. One such indicator, the bullish flag pattern, has some analysts, such as Gert van Lagen, cautiously optimistic.
<blockquote class="twitter-tweet”>
twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc (2D) – The 3Y+ Cup handle with handle itself qualifies as a bull flag with a target of $127,000.
Price has clearly broken out and successfully retested the flag for support.twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc is ready for the next section
Override Setup: Close Below $60,000 pic.twitter.com/5fDkeubpvT
—Gert van Lagen (@GertvanLagen) twitter.com/GertvanLagen/status/1802346272541577450?ref_src=twsrc%5Etfw” rel=”nofollow”>June 16, 2024
This pattern suggests a possible price increase based on the recent price movement, with bitcoin consolidating within a specific range before a possible breakout.
Lagen added that btc had successfully tested support. If that is accurate, then bitcoin could begin a bull run shortly and reach $127,000 in the coming weeks or months.
Adding fuel to the bullish fire is the apparent dominance of buying sentiment among futures investors. Futures contracts allow investors to speculate on the future price of an asset and, in this case, it seems that many are betting on the rise of bitcoin. This could create a self-fulfilling prophecy, as increased buying drives up the price, attracting even more buyers.
A worrying trend?
Meanwhile, on-chain data, which tracks the movement of bitcoin” target=”_blank” rel=”nofollow”>bitcoin in blockchain, reveals a worrying trend. There has been an increase in deposits on exchanges, indicating that investors are moving their bitcoin to platforms where they can be easily sold. This suggests a possible sell-off on the horizon, which could put downward pressure on the price.
bitcoin Short-Term Outlook
bitcoin's immediate future seems precariously balanced on a tightrope. Technical indicators such as RSI, CMF and MACD, which measure investor momentum and strength, are currently bearish, suggesting continued price decline.
This aligns with the prediction of some analysts who see bitcoin could fall as much as $60,000 in the coming days if the bearish trend continues.
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However, there is a silver lining for the bulls. If bitcoin can defy the bearish signals and turn bullish, analysts predict an initial rise to $67,650. This short-term price movement will likely depend on a delicate balance between buying pressure and any potential sell-off.
Featured image from YouTube, TradingView chart
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