Bitcoin‘s price has been hovering below $43,000 after a swift retreat from the $49,000 mark. Despite decent volumes in spot BTC ETFs, on-chain signals indicated a potential downturn throughout the week. Investors are now anticipating the next market movements.
Currently, Bitcoin is on an upward trajectory, but a price correction is underway. The 50-day exponential moving average (EMA) has helped bulls contain the fall at the $42,120 region. However, the lack of significant demand is evident as the Relative Strength Index (RSI) fluctuates in the neutral zone. The cumulative trading volume in crypto markets dropped by 50% during a U.S. public holiday on Monday.
The RSI forming lower peaks suggests possible continued selling pressure, with the first warning signal for a potential oversold situation being closures below $42,120. If Bitcoin’s price falls below the 50-day EMA, the current trend could see a drop to as low as $34,850.
Analysts like Crypto Poseidonn highlight the $25,000-$30,000 range as a significant accumulation zone, suggesting that overselling could extend to these levels. Other experts, such as Capo, are also focusing on similar targets.
Some analysts believe the market has already priced in ETF news, predicting a possible decline to $24,000. On the other hand, optimists like Lucas Kiely of Yield App and Christos Makridis of Dynamic AI expect a new peak in the $50,000-$60,000 range, potentially coinciding with the upcoming Bitcoin halving event, signaling higher price targets by June. The prevailing bull flag formation in Bitcoin also points to a continued uptrend, with a target of $56,200, potentially sustained by the integration of companies into ETFs.