Bitcoin approaches a critical point as it continues to trade near the lower end of a rising trend. Analysts believe the trend will continue upward, but a drop below the support level could trigger a reversal. The next few weeks will be critical in determining the market’s direction.
At the time of writing, Bitcoin (BTC) is trading at the price of $96,981, while its 24-hour trading volume stands at $93.39 billion, with a market capitalization of $1.94 trillion. Over the last 24 hours, the price of BTC has increased by 3.73%.
Bitcoin Trend Indicates Bullish Path
Notably, crypto analyst EGRAG CRYPTO reported that Bitcoin is establishing a rising channel pattern. This is being reflected by the fact that the price is consolidating close to the lower edge of the channel, which indicates that the market is close to reaching a critical point.
However, there are two possible market outcomes in this case. These are the bull continuation market outcome and the bear breakdown market outcome. In the bull market outcome, a closing price above 105,000 USD, with a probability of 65-70%, will indicate market strength.
This may open the way to the $180,000-$210,000 level, and this trend will remain healthy and intact. But in the lower-probability bearish case, which has a 30-35% probability, a weekly closing below $83,000 may break the channel and open the way to further downward moves.
Also Read | Bitcoin Treasury Buying Outpaces Supply: A 3-to-1 Advantage
Bitcoin Holds Strong Wave IV
Meanwhile, another analyst, More Crypto Online, noted that the range for Bitcoin at $97,000-$98,400 corresponds to the target for wave IV. There is no need for any additional decline, as indicated by the analysis, unless the micro-support levels are breached, and there are no signs of that at the moment.
On the whole, BTC is still managing to hold on to a good trend, but it is the fact that the coming weekly closing levels are of prime importance in understanding whether this trend will continue or a correction will take place.
Also Read | Bitcoin Price Alert: Key Levels Suggest $105K Upside or $76K Pullback
