Bitcoin, the undisputed king of cryptocurrencies, finds itself in a tug of war between bullish whispers and bearish rumblings. While some analysts point to technical indicators indicating higher prices, others warn of potential risks lurking beneath the surface.
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Bulls see bull flags and futures
Technical analysts are a strange breed. They speak the language of charts, patterns and indicators, and decipher the mysterious movements of the market. One such indicator, the bull flag pattern, has made some analysts, such as Gert van Lagen, cautiously optimistic.
$ Bitcoin (2D) – The 3Y+ cup handle with the same handle qualifies as a bull flag targeting $127,000.
Obviously, the price broke the flag and successfully retested it for support.#Bitcoin Ready for the next stage 📈
Invalidation setting: Close under $60,000 pic.twitter.com/5fDkeubpvT
– Gert van Lagen (@GertvanLagen) June 16, 2024
This pattern indicates a potential price increase based on recent price action, with Bitcoin consolidating within a range before a potential breakout.
Lajin added that BTC successfully tested the support. If this is accurate, Bitcoin could soon start climbing and reach $127,000 in the coming weeks or months.
Adding fuel to the bullish fire is the clear dominance of buying sentiment among futures investors. Futures allow investors to speculate on the future price of an asset, and in this case, many appear to be betting on Bitcoin's rise. This can create a self-fulfilling prophecy, as increased buying causes the price to rise, attracting more buyers.
A worrying trend?
Meanwhile, the data is on the chain, which tracks the movement Bitcoin On the blockchain, it reveals a worrying trend. There has been an increase in deposits on exchanges, suggesting that investors are moving their Bitcoin to platforms where it can be easily sold. This indicates a potential selling spree on the horizon, which could put downward pressure on the price.
Bitcoin short term forecast
Bitcoin's immediate future appears to be precariously balanced on a tightrope. Technical indicators such as the RSI, CMF and MACD, which measure momentum and investor strength, are currently bearish, indicating continued price declines.
This is in line with the expectations of some analysts who see Bitcoin likely to fall as low as $60,000 in the coming days if the downtrend continues.
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However, there is a silver lining for bulls. If Bitcoin can defy the bearish signals and turn bullish, analysts expect an initial rise to $67,650. This short-term price action will likely hinge on a delicate balance between buying pressure and any potential selling spree.
Featured image from YouTube, chart from TradingView
