Bitcoin’s recent price drop has already triggered a major sell-off in the crypto market, and it doesn’t appear to be going away anytime soon. Although trading below $90,000, there are some implications for the pioneer cryptocurrency depending on what comes next. The tug-of-war between the bulls and bears allows for either direction, and with major levels at risk, a crypto analyst has analyzed what the consequences of each move could be.
How the Bitcoin price could turn out anyway
Crypto analyst HAMED_AZ analyses the Bitcoin price chart, which indicates the current trend and what could lead to a recovery or a crash. Firstly, the crypto analyst outlines that the bitcoin price is now in a corrective phase. This started with an all-time high of $126,000, and since then the cryptocurrency has lost more than $35,000 of its value.
Related reading
The corrective phase also places the cryptocurrency within a tight range, remaining between $84,000 and $94,000. Both levels have served as important support and resistance in the past, making them the points to beat that will determine the next move.
Continuing trading within this range will ensure that the Bitcoin price does not undergo a major move. The most important move will occur when one of these support or resistance levels is broken, depending on which side can pull the momentum in their favor.
Bull or bear case to watch out for
The first case is that the Bitcoin bulls are able to crush the resistance that has risen at $94,000 over the past week. Since expectations for an upward move are high, if it plays out this way, it would push Bitcoin price to retest this resistance level.
Related reading
If the breakout is confirmed and resistance fails, the crypto analyst believes that Bitcoin price will once again rise above the psychological level of $100,000. The main target is at $108,000 before momentum runs out.
However, there is still a possibility that the bears will take control if they manage to push the price below the $84,000 support. This level acted as the main support in the last downtrend and has thus become the level to hold. Failure to secure this level would cause a crash that could push the Bitcoin price as low as $72,000.
Featured image of Dall.E, chart from TradingView.com