Bitcoin (BTC) price is facing the $17,000 resistance. Meanwhile, some analysts, whose previous predictions came true, shared their latest expectations for BTC, the largest cryptocurrency by market cap. Here are the details…
Kaleo: A new bull market could begin for Bitcoin
Kaleo says that historically every Bitcoin bull market starts with a price crossover above the 200-day simple moving average (SMA). The trader says that while the strategy is simple, watching the break of the 200-day SMA will be one of the most important signals to consider before moving higher in BTC.
I think, really, one of the things as far forward as watching big pivots, any sort of shift from where we are, is that the 200-day simple moving average is also rebounding. Being enthusiastic and switching to saying ‘OK, we’re free for a little while’ is one of the things I look for. I know it’s incredibly simple but this is a move that has been a signature for every bottom we’ve seen on this chart over the last few cycles. Until that happens, it’s important to just stay patient.
Kaleo proposes a scenario where Bitcoin consolidates and hits a somewhat new bear market low in the coming months before seeing a spike by June 2023.
Smart Contracter also conveyed its rise expectation
Smart Contracter told his 216,900 Twitter followers that he expects Bitcoin to recover in the near-term before BTC fires another leg towards its sub-$16,000 target. In other words, it points to the rise first and then the bottom level. Smart Contracter is a popular practitioner of Elliott Wave theory, a technical analysis approach that tries to predict future price action by following crowd psychology. The theory is that a bearish asset usually bounces off after completing a five-wave retracement before continuing the downtrend.
Looking at the analyst’s chart, it seems to predict a short-term breakout for Bitcoin to $17,500 before a five-wave correction towards $15,600. The crypto strategist also says that Bitcoin looks weak in the higher timeframe after BTC bulls failed to sustain last week’s rally.
Smart Contracter also closely monitors the US dollar index (DXY), which measures the dollar’s value against a basket of fiat currencies. Investors watch DXY’s performance because a strong index indicates investors are turning to the dollar rather than risky assets. According to the analyst, DXY is now trending bullish on the monthly chart after clearing the cross resistance.
DonAlt: BTC will remain in bear market
Finally, analyst DonAlt says that BTC bears flexed their muscles after preventing Bitcoin from successfully breaking out of resistance around $17,500. According to DonAlt, Bitcoin’s failed breakout shows that the momentum is staying with the bears and that BTC will see a new bear market around $15,300 this year. The analyst used the following statements:
Looking at the daily chart, the situation is dire. This is a false break in the downtrend that you don’t actually want to see. In this case, this is usually where the peak is. You should keep your target in the low range, but given that the low range is very, very weak here, you basically expect it to run this way, if you’re aiming for the low range you actually want to aim lower.
According to DonAlt, a bearish scenario is more likely to occur as BTC is currently trading below the lower timeframe support area. “We are in this bad situation with this bad support at $16,800… Basically, the range before the false break…,” the analyst says.