Bitcoin has had one rollercoaster of a year, playing with the psychology of most traders and liquidating them to a pulp. The majority of traders have lost their life savings in crypto during this bear market, but many more have made life-changing gains.
It is that time of the week again, we get to see what Bitcoin is doing and where it is likely to go next. Enjoy.
Bitcoin Price: A Recap
In this article, on June 16, we called a Bitcoin target of $17,735. We could not have been more accurate. Bitcoin crashed to a low of $17,592 just 2 days later on June 18 before bouncing off this support.
As of the time of writing, the Bitcoin price is $20,503, which is a 0.6% increase in the last 24 hours.
Bitcoin Bearish Scenario
Currently, Bitcoin seems to be forming a bearish flag, although it’s not fully formed. It could also be a double bottom on the 1D timeframe. For the bearish scenario, if it forms a bearish flag, this indicates a continuation of the bitcoin sell-off. The markets better prepare for more blood.
Digging deeper, the $17500 support is not strong. One good major FUD and bitcoin slides further.
If Bitcoin fails to hold the $17,500 support, it could spiral down to $12,372.
If that does not hold, $10,183 is the next support.
Bitcoin Bullish Case
While all seems bleak, Bitcoin still has some hope of a rally. Currently, BTC is trading way below the 200 EMA on the Daily chart. Moreover, there is a support-turned-resistance that might have possibly formed in the $30,000 region.
The case for a bullish Bitcoin right now is a possible retest to the 21-day EMA. This would put Bitcoin at $23,930 (1). If the bulls have more power, they could try and push up the price to the $28,799 area (2). Beyond this, Bitcoin may try to reach the 200 EMA, putting it at $37,254 (3).
If that happens, it would serve as the second retest to the 200 EMA, since the previous one failed.
In all honesty, the bearish bitcoin case seems stronger than the bullish one. However, the markets can be unpredictable. For now, let’s see what transpires in the crypto world. More positive news will translate into a bullish rally, while more negative news will just push the price further down.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.