The Bitcoin market has been significantly impacted by ongoing events, including the repayment of 140,000 Bitcoins from the Mt. Gox case and the German government’s Bitcoin liquidations. These actions have heightened the probability of substantial Bitcoin sales worth billions, leading to investor concerns following a 15% drop in early July.
What is Influencing Bitcoin Prices?
Independent market analyst Matthew Hyland has confirmed a downward price target for Bitcoin below $38,000. In a post dated July 8, Hyland highlighted Bitcoin’s breakdown from a multi-month consolidation range on the weekly chart and indicated a low likelihood of the cryptocurrency returning to that range.
Hyland’s bearish outlook is further supported by Bitcoin’s weekly relative strength index (RSI) hovering around 45. This RSI level suggests a balance between buyers and sellers, but the prevailing bearish trend implies there is still room for further decline until the RSI reaches the oversold threshold of 30.
What Do Market Analysts Predict?
Popular analyst Stockmoney Lizards also predicts a further decline in Bitcoin’s price, but the analyst’s target is $50,000. Using the bat harmonic formation, which includes a series of price movements and retracements, Stockmoney Lizards expects a critical point at $50,000, followed by a sharp price recovery.
Point D of the bat harmonic formation is crucial, as it marks the area where investors typically anticipate a reversal confirmed by additional indicators like candlestick patterns or volume. For Bitcoin, this point corresponds to the $50,000 level, after which the price could see a significant rebound:
“We expect another liquidity flow potentially below the $50,000 level with a long wick to form the $52,000 support,” Stockmoney Lizards commented.
Key Takeaways for Investors
• Monitor Bitcoin’s RSI levels closely to anticipate potential price movements.
• Pay attention to the $38,000 and $50,000 price targets as critical support and resistance levels.
• Look for reversal signals at the $50,000 level as indicated by the bat harmonic formation.
These insights could help investors make informed decisions during this period of market turbulence.
