The Bitcoin price fell below $70,000 this weekend, effectively erasing the gains from the week before. This move puts the cryptocurrency in a dangerous position as the bulls are now struggling to find any major support or risk the decline going deeper from here on out. According to an analyst, Bitcoin bulls with momentum will need to regain and hold $69,000 to kick off a new recovery trend.
Why Bitcoin Bulls Should Hold $69,000
According to crypto analyst Teal Streetthe bulls will have to defend $69,000 to prevent the Bitcoin price from falling further. The reason for this is the fact that Bitcoin price has a chance to move up to the $73,000-$74,000 level if this support holds. After this, there is still the possibility of a final move towards $76,000-$77,000.
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On the other hand, there is a lot of bearish action to be seen as the bulls lose $69,000. This bearish move would trigger a drop of at least 5%, with the crypto analyst placing the target somewhere between $64,000 and $66,000. While this drop may not be as impactful as previous sharp declines, it could ultimately be negative for altcoins, which are already suffering.
On Sunday, Bitcoin price broke below $69,000, but the bulls were able to maintain the $68,000 level and remained quite close to the target. Nevertheless, this means that the bulls are now in a tight spot and have the need to recover $69,000 or see how the trend plays out.
BTC is still stuck in a corrective phase
Another crypto analyst, HAMED_AZ, too published a message supporting Bitcoin’s current bearishness, saying that the digital asset has actually entered a corrective phase. As a result, the Bitcoin price is expected to fall after an initial push towards the top of the ascending channel.
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If the price cannot break the resistance at the top of the channel, the downtrend will continue, leading to a decline of more than 10%. This move will most likely cause the Bitcoin price to fall below $60,000 for the first time in more than a year.
Alternatively, if price is able to successfully test channel resistance and break through with momentum, the downtrend may be broken completely. This scenario would lead to a rise towards $80,000 and likely kickstart the next run.
Featured image of Dall.E, chart from TradingView.com