What’s Next for Bitcoin and the Crypto Market?
Will This Recent Dump Mark the Start of a Bear Market, or Will Bulls Reverse the Trend?
The cryptocurrency market faced a huge setback recently, and the hope of Bitcoin hitting over $100k soon seems out of reach. But the question is: Are you bearish or bullish on the market, knowing Bitcoin has faced resistance above the $70k region?
To gain a clear perspective, we rely on technical analysis to determine what’s next for Bitcoin and the cryptocurrency market. Analyzing the chart below, I have marked areas of resistance (1) and support (2 & 3).
At the resistance zone above $70,000, Bitcoin faced rejection over five times. Fortunately, the second zone (2) has acted as support, with the $50,000 region serving as the next psychological support for Bitcoin.
Although Bitcoin dipped below $50,000 before getting bought up, I saw that as a move to trigger stop-loss targets set below the $50k psychological support. So, if you missed buying Bitcoin below $50,000, consider setting “Buy Limit Orders” at $50,000 in case the market dips to retest that zone for liquidity.
I expect the market to move sideways in the next few days and possibly retest the $50k support zone if we don’t see a V-shape recovery pattern on Bitcoin.
