The Bitcoin price action over the past few months has been unpredictable. But one thing has been clear, and that is the fact that the bears have kept a tight lid on the price action. From here, there are a number of ways the Bitcoin price could move, with most speculation pointing to a possible recovery. However, there are levels that Bitcoin price must maintain for this recovery to materialize, otherwise we risk losing ground to bears.
Bitcoin price should remain above $60,000
Crypto Analyst Swallow Academy, in a recent analysis, showed that the $60,000 level has become one of the most important points of support for the Bitcoin price. This is because this was the low point of the early February crash, indicating that bears may want to retest the crash.
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Given all this, it has become imperative that bulls hold this to trigger a new recovery trend. In this case, a recovery will follow if the bulls manage to successfully defend the price and hold above $60,000, regaining buy-side volume.
The analyst predicts that such a recovery would see the Bitcoin price return to the $70,000-$75,000 area. As a result, the great city of liquidity would be wiped out. After this, a downtrend would eventually begin, which would be the natural path for such a trend.
However, in case bulls fail to hold $60,000 and The buy-side push backfiresthen the pressure on the selling side is expected to increase. In this scenario, the Bitcoin price would start to fall faster than expected and create a new crash trend, pushing it to new yearly lows.
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Swallow Academy’s analysis states that a break from the local lows would result in another very deep move towards lower lows. While this is not entirely bearishSince the price is expected to recover from lows, the chart shows that the Bitcoin price could fall below $44,000 before reaching a local low.
Currently, Bitcoin bulls have built a notable defense above $62,000, suggesting that this is the next level for the bears to beat. Alternatively, the previous cycle low is at $61,354, and a break below this point would be the first time in history that Bitcoin has done so.
Featured image of Dall.E, chart from TradingView.com