The previous market crash wiped more than USD 1 Trillion in the crypto market capitalization. Despite this heavy crash, traders and investors simply swapped their cryptos for stablecoins. This was done in hopes of getting back in action once things cool off. On the other hand, the market is still showing a bearish trend for most cryptocurrencies, including Bitcoin. In this article, we’re going to analyze what happened ever since the market crash, and forecast what might happen to the price of BTC. Is Bitcoin up? Will Bitcoin pull a breakout higher or continue on its bearish trend?
Bitcoin Price is STILL on a Downtrend
Despite the current positive sentiment in the crypto market, the overall trend seems to be still downwards. This is especially true for Bitcoin, as its prices are still in a downward parallel trend. On the other hand, we might have a glimpse of hope. Prices currently are near a “make it or break it” case scenario. We can clearly see in figure 1 how the current price of USD 34,450 is near the top trendline. In case prices manage to breakout higher than this price, we can safely assume a break in the downtrend and a newly established reversal upwards.
On the other hand, prices might still adjust lower and continue on their downtrend. Looking at the fundamentals, there seems to be traction in the crypto sphere. Positive news is resurfacing again, from the positive B-word Conference to Binance’s engagement in the NFT gaming…So far, things look promising in the crypto world, we just need good technicals for support.
Bitcoin Price Prediction – How to prepare a Trade Setup
Zooming into that downtrend, we can use a Fibonacci Retracement and first assess the area where BTC might adjust towards. In figure 2, the USD 32,200 seems like a safe stop-loss area if traders open up trades at current prices. If prices manage to break that 50% retracement, we can assume that prices are still in that downward trend. On the other hand, if prices successfully break the USD 35,000 price well higher, we can easily reach the USD 38,000 again, and hopefully, break the USD 40,000 psychological price mark.