nquestionably the king of cryptocurrencies, Bitcoin finds itself caught between optimistic whispers and negative roars. While some experts point to technical signals suggesting a price increase, others caution of possible dangers hiding under the surface.
Bulls See Bullish Flags And Futures
Technical analysers are naturally interested people. Speaking in a language of charts, patterns, and indicators, they interpret the mysterious market moves. One such signal, the bullish flag pattern, has some analysts—like Gert van Lagen—cautiously hopeful.
$BTC [2D] – The handle of the 3Y+ Cup with Handle itself qualifies as a bullflag targeting $127k.
Price clearly has broken out of and successfully retested the flag for support.#BTC is ready for the next leg up 📈
Invalidation setup: close below$60k pic.twitter.com/5fDkeubpvT
— Gert van Lagen (@GertvanLagen) June 16, 2024
Based on recent price movement, this trend points to a possible price rise; Bitcoin is consolidating inside a particular range before a possible breakthrough.
Lagen said BTC had successfully tested the support. If that is right, then Bitcoin might start a bull run soon and hit $127,000 in the next weeks or months.
Future investors seem to be dominated in buying enthusiasm, so fueling the optimistic fire. Futures contracts let investors gamble on the future value of an asset; in this case, many seem to be betting on the increase of Bitcoin. This could lead to a self-fulfilling prophecy since rising prices draw even more customers by driving purchase.
A Worrying Trend?
Concurrent with this, on-chain data—which follows Bitcoin’s blockchain movement—showcases a worrying tendency. Deposits to exchanges have surged, suggesting investors are shifting their Bitcoin to sites where it might be readily sold. This points to a possible selling frenzy just around the corner, which would cause the price to be pressured down.
Bitcoin Short-Term Outlook
Bitcoin’s near future seems dangerously poised on a tightrope. Currently bearish technical indicators including RSI, CMF, and MACD, which gauge momentum and investor strength, point to ongoing price drop.
This fits the forecasts of some analysts who, should the bearish trend persist, Bitcoin would drop as low as $60,000 in the next days.
For the bulls, there is a bright future though. Analysers estimate an initial advance to $67,650 if Bitcoin can buck the bearish indications and become positive. The balance between purchasing pressure and any possible selling frenzy will probably determine this transient price fluctuation.
Featured image from YouTube, chart from TradingView