Coin World Report:
The Bitcoin market has been significantly impacted by ongoing events, including the repayment of 140,000 bitcoins in the Mt.Gox case and the Bitcoin liquidation by the German government. These actions have increased the possibility of a significant sell-off of billions of dollars worth of bitcoins, causing concern among investors after a 15% drop in Bitcoin in early July.
What is impacting Bitcoin prices?
Independent market analyst Matthew Hyland has confirmed a price target for Bitcoin below $38,000. In a post on July 8th, Hyland emphasized the collapse of Bitcoin from a consolidation range of several months on the weekly chart and stated that the likelihood of the cryptocurrency returning to that range is very low. Visit NEWSLINKER for the latest tech news.
Hyland’s bearish outlook is further supported by the Relative Strength Index (RSI) of Bitcoin hovering around 45. This RSI level indicates a balance between buyers and sellers, but the overall bearish trend suggests further downside potential before reaching the oversold threshold of 30 on the RSI.
What do market analysts predict?
Prominent analyst Stockmoney Lizards also predicts further downside in Bitcoin prices, but the analyst’s target is $50,000. Stockmoney Lizards utilizes the Bat Harmonic pattern, including a series of price fluctuations and pullbacks, with a critical point at $50,000, followed by a significant price rebound.
The D point of the Bat Harmonic formation is crucial as it marks the area where investors typically expect a reversal, confirmed by additional indicators such as candlestick patterns or volume. For Bitcoin, this point corresponds to the level of $50,000, after which the price may experience a significant bounce back:
Stockmoney Lizards commented, “We expect another liquidity flow to potentially dip below the level of $50,000 and form support at $52,000.”
Key takeaways for investors
• Monitor the RSI levels of Bitcoin closely to predict potential price fluctuations.
• Note the price targets of $38,000 and $50,000 as key support and resistance levels.
• Look for reversal signals at the $50,000 level, as indicated by the Bat Harmonic formation.
These insights can help investors make informed decisions during this period of market volatility.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies and the associated risks and should conduct their own research.
