Bitcoin costs suffered notable losses today, reaching $60,000 and falling to their lowest price in several weeks.
At the time of writing, the virtual currency is trading at around $61,300, according to figures from CoinMarketCap.
After those most recent dips, what’s next for the virtual currency?Several experts weighed in, commenting on the cryptocurrency markets and providing technical analysis.
These latest price movements materialized just days before the upcoming 2024 halving, which is expected to take place in two days and will see Bitcoin’s new origin rate drop to 450 sets per day from the existing 900.
If demand remains strong or even increases, it will put upward pressure on the value of the virtual asset, which could lead to notable gains.
Despite those bullish factors, Bitcoin has declined recently, a progression that some analysts have interpreted as the result of market participants “buying the buzz and promoting the news” about the halving.
Looking ahead, a number of market watchers have pointed to key degrees of resilience that investors deserve to keep an eye on.
Tim Enneking, Managing Partner at Psalion, spoke on this topic.
“As I write this, the key question is: Is the $60,000 going to happen seriously?” he said in emailed comments.
“The last time we got to this point was in early March, and we really very briefly broke $59,000 before recovering without delay and introducing HUD less than 10 days later. For that and other reasons, it’s significant $60,000 and a little less,” Enneking said.
“But if $58,000 falls (and I suspect it will), the next genuine value will be just above $52,000,” he said.
Enneking was kinder about his outlook for the virtual currency, talking about key developments that could affect its price.
“Given the dip of roughly two quarters we’ve noticed after each of the last 3 halves, I suspect we’ll see the same thing this year: the only wild card is the SEC’s spot resolution in the US. The U. S. Securities and Exchange Commission on ETH has been discussed. ETF, likely on May 7. If any other set of spot crypto ETFs is approved, the drop after the ATH will likely be smaller and shorter than after one of the last three halvings,” Enneking predicted.
Brett Sifling, Investment Advisor, Gerber Kawasaki Wealth
“Bitcoin has had a big rally over the past 6 months, before consolidating between highs of just under ~$74,000 and ~$60,000. This consolidation range will need to be monitored, as a sharp break in any of those numbers may recommend continued momentum in either direction,” he said in emailed comments.
“If it breaks above the highs, we’ll be in uncharted territory and we’ll have to keep an eye on circular numbers like $90,000 and $100,000. Investors have a tendency to favor circular numbers and sell orders have a tendency to accumulate to profits,” Sifling said.
“In the event of a slowdown, it would be wise for Bitcoin to stay above $50,000 if it needs to continue its bullish momentum,” he added.
When asked if this value point was the one investors should look out for if the cryptocurrency were to break the existing Array, Sifling replied, “Yes, the $50,000 to $52,000 diversity was the last major point set in February of this year. “
“This is also a point of resistance passed in September and December 2021. “
Sifling also provided some insights into key variables that may pique the interest of crypto market watchers in the coming weeks and months.
“After the halving, I don’t think there’s a major catalyst that Bitcoin investors are watching,” he said.
“I’m guessing other people will be keeping a close eye on ETF flows. Hearing about institutional investors or countries around the world adding Bitcoin may be potential positive news in the future.
“Investors will also be keeping an eye on macroeconomic factors, such as Powell’s rate cut, which may cause the market to adopt a threat habit that is likely to be favorable for Bitcoin and cryptocurrencies as a whole,” Sifling noted.
William Noble, who is currently Director of Content Research and Development at Emerging Assets Group, took the floor and provided technical analysis.
“Bitcoin has just established a square trading diversity for March and April. This diversity is similar to February,” he said.
The chart below helps illustrate the aforementioned trading range.
Bitcoin Square Trading Range
“Bitcoin has come out of that square diversity and it’s very possible that it will come out of it,” Noble said.
“The breakout could be very brutal as BTC broke through the bottom of the market on April 17,” he noted.
The technical analyst noted that if Bitcoin breaks above the bottom of the square range, the main levels that market watchers should pay attention to are $60,700 and $57,700.
“If this turns out to be a ‘false collapse,’ the theory of technical research indicates that there may simply be a strong upward move and a break above the most sensitive point of the square. “
“The explanation for this imaginable leak is simple. Bitcoin has just stressed or liquidated all buyers since Feb. 24,” he said.
“Leveraged players and vanquished retail buyers were likely forced to sell or sell out of fear. Once other people realize that all bearish “catalysts” are nothing more than a transient distraction, Bitcoin can do so dramatically.
Disclosure: I Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS and SOL.