With the Bitcoin price showing some recovery after crashing to $102,000, speculation is now rife about where the pioneer cryptocurrency could go. So far it’s been a mixed bag, with some expecting a rally similar to the COVID rally, and others believing this is the start of the bear market. In a similar vein, a pseudonymous crypto analyst has done just that painted get a clear idea of where they expect the Bitcoin price to go depending on how it performs against the midpoint level.
What happens if Bitcoin price stays above the midpoint?
Currently the midpoint line is important for the Bitcoin price performance. This is because it lies firmly between the major support and resistance of recent weeks. This brings the midpoint to around $111,994, marking the next decisive point for the cryptocurrency.
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As the crypto analyst explains, if Bitcoin price can hold above the midpoint, the next major resistance to overcome is at the Fibonacci level of 0.75. This translates to the $117,605 price level, making this the point where the bears could face the most resistance, especially considering that this trend is bearish on the lower time frames.
Nevertheless, staying above this midpoint would mean the trend continues remains bullish and in favor of buyers. So it would steer the trend towards a confirmation of the rally, and possibly lead the price towards the next bid at new all-time highs. “A V-shaped recovery and a straight move to the highs would be the maximum pain after such a brutal decline,” the analyst said.
Bears can still regain control
While Bitcoin price remaining above the midpoint is still bullish, there are much more bearish implications if the price collapses at this level. The analyst points out that losing the midpoint would mean that Bitcoin price was once again open to filling the wick.
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This wick refers to the flash crash wick that was set last Friday, when the Bitcoin price fell to $102,000. The market continues to struggle to recover of the last crash, even when Bitcoin was above $110,000, and another breakdown towards $102,000 could be catastrophic for altcoins.
Another crypto analyst also supports the bearish statement pointed out that the Bitcoin price is showing signs of distribution. With this, it is possible that Bitcoin could form a reversal pattern and continue the price decline. From here, the analyst sees the price eventually falling below $100,000 before finding support.
Featured image created with Dall.E, chart from Tradingview.com