The Rise Of Bitcoin Continues: Trader Predicts $60k-$70k Range After Consolidation
Bitcoin (BTC), the largest cryptocurrency in the market, has recently broken its consolidation below the $30,000 level, holding steady at $30,200. This price surge marks the end of a prolonged period of crypto winter and the beginning of a new uptrend for the cryptocurrency industry.
Bitcoin is currently trading at $30,200, experiencing a slight decrease of 0.8% in the last 24 hours, despite recently reaching its new yearly high of $30,900 due to a strong bullish momentum.
With the bear market seemingly behind, there is a growing expectation among investors and cryptocurrency enthusiasts that BTC will continue to climb and possibly reach new all-time highs. However, uncertainty remains as to whether Bitcoin is currently in a new phase of accumulation to reach higher levels or if its support floors can withstand a potential pullback.
Anticipating The Next Move For Bitcoin
According to a trader known as “Alan,” Bitcoin is undergoing a significant shift, which describes the current trading levels as “platform I” and “platform II.” At present, Bitcoin is transitioning from the first platform, which is between $30,000 and $40,000, to the second platform, which spans between $60,000 and $70,000.
The MACD indicator, also known as the D3 chart, is a widely used technical analysis tool for identifying long-term trends in the market. This type of chart relies on a longer time frame to analyze market trends, which for trader Alan, based on the MACD bullish cross on the D3 chart, this bullish signal has triggered a new bull run for Bitcoin, indicating that the cryptocurrency may be on the path to new higher highs.
Moreover, Adam Back, CEO of Blockstream, a blockchain technology company, has recently noted that Bitcoin’s price has significantly increased in the first quarter of 2023. From 31st December 2022 to 31st March 2023, the price of Bitcoin increased by approximately 70%, rising from $16.6k to $28k.
For Back, If this growth rate were to continue, Bitcoin’s price could reach $48k by June, $82k by September, and a staggering $140k by December. However, if the goal is to reach a price of $100k by the end of the year, the growth rate would need to fall from 70% to 53% for the second, third, and fourth quarters of the year. This would represent a more moderate rate of growth but one that is still significant for Bitcoin.
Risks Loom In The Near Term For BTC
According to Colin Wu, the expiration of 30,500 BTC options with a Put Call Ratio of 0.99, a max pain point of $29,000, and a notional value of $0.93 billion is about to expire. A ratio of 0.99 suggests that there are slightly more put options than call options, which could indicate that investors are bearish on Bitcoin’s short-term prospects.
The max pain point of $29,000 could exert downward pressure on BTC’s price as the options expire. This is because option holders may try to push the price toward this level to limit their losses.
If Bitcoin’s price experiences a decline, there is a near-term support level at $29,500 for the cryptocurrency. However, if this support level fails to hold, there is a potential for Bitcoin to drop further toward the $28,300 support level.
Featured image from Unsplash, chart from TradingView.com