On May 22, Bitcoin struggled to maintain its position above $69,000, causing analysts to worry about a potential decline from recent highs. Bitcoin’s price, which has tested all-time highs twice in 2021, shows signs of weakening. What does the future hold for Bitcoin? Detailed charts and data provide insights into this question.
What Are the Key Levels for Bitcoin?
Currently, Bitcoin remains above the crucial $69,000 mark. Material Indicators, a trade source, emphasized that holding this level is vital to confirm a resistance/support flip at the previous all-time high. However, their proprietary trading tools indicate a bearish signal on daily timeframes, suggesting that any move above $71,500 would be invalid.
Other experts share similar concerns. John Bollinger, creator of the Bollinger Bands volatility indicator, observed a concerning reversal of two bars at the upper Bollinger Band, hinting at a potential consolidation or pullback. Although not indicative of a long-term bearish trend, it raises short-term concerns.
Predictions for a broader pullback in Bitcoin’s price have circulated within the trading community. Popular trader Credible Crypto speculates a return to $60,000 or lower, supporting this view with charts suggesting Bitcoin might fall below the starting point of an impulsive move.
What’s Going on with Ethereum?
Meanwhile, decisions regarding Ethereum exchange-traded funds (ETFs) in the US could influence Bitcoin targets. Decentrader co-founder Filbfilb noted that even a worst-case scenario, such as ETF rejections, would merely reset the market to its pre-move position. A positive decision, however, could propel Bitcoin into price discovery, potentially reaching $80,000. The ETH/BTC pair recently hit its highest levels since mid-March.
Key Takeaways for Traders
In light of these developments, traders should consider the following:
- Monitor Bitcoin’s ability to maintain the $69,000 support level.
- Watch for any bearish signals, especially on daily timeframes.
- Stay updated on Ethereum ETF decisions as they could impact Bitcoin’s price.
- Be prepared for potential short-term consolidations or pullbacks.
Staying informed and agile can help traders navigate these uncertain times in the cryptocurrency market.
