bitcoin remains below $60,000 and continues to fall. While there is optimism that the bulls will return and reclaim key resistance levels in the coming days, one analyst at x is bearish.
bitcoin must break this level for bulls to take control
In a post on x, the analyst x.com/ali_charts/status/1831278280802267476″ target=”_blank” rel=”noopener nofollow”>saying The short-term trend will favor sellers unless there is a quick trend change. If the bulls fail to absorb the deluge of selling pressure, prices, according to their forecast, will continue to fall.
Technically, bitcoin is in a bearish formation. Although there are occasional pockets of strength, buyers have not been able to push prices higher, recovering the $60,000 mark, for example.
In the medium term, the immediate support line will be $49,000 or the August lows. At the higher end, buyers need to build momentum and reclaim $72,000.
It is this state of price action that is holding back the bulls. Therefore, the analyst is bearish and claims that the short-term trend will change only when btc floats above $68,000.
Considering that prices are almost $10,000 away from this reaction point, it could be a difficult task for bullish traders.
If buyers fail to conquer this resistance trend line and, preferably, break above $72,000, the analyst believes that prices will continue to “fall.”
For now, the reaction between $55,000 and $60,000 could mark the medium-term trajectory. A sharp drop below $55,000 could trigger panic selling, accelerating the fall towards the August lows.
Inflation, the US Federal Reserve and spot ETFs in the spotlight
Although fear prevails, analysts expect prices to be supported by fundamental factors in the coming weeks. First, the recent development of inflation in the United States is the main driver. As this key metric falls, the United States is expected to cut interest rates for the first time in more than two years in September.
If the expansion of cryptocurrency prices after the intervention from 2019 to 2020 is any indication, bitcoin prices will likely benefit.
With the approval of spot bitcoin ETFs in January, the rising valuation would likely attract institutions. In turn, this would propel the coin to new highs, a huge relief for holders. According to btc-spot” target=”_blank” rel=”noopener nofollow”>Bland Valuebitcoin ETF issuers in the United States currently manage more than $52.6 billion worth of coins.
Featured image from Canva, chart from TradingView
