Bitcoin remains below $60,000 and is falling. While there is optimism that bulls will flow back and reclaim key resistance levels in the coming days, one analyst on X is bearish.
Bitcoin Must Clear This Level For Bulls To Take Over
In a post on X, the analyst said the short-term trend will favor sellers unless there is a rapid shift in trend. If the bulls fail to soak in the deluge of selling pressure, prices will, in his forecast, continue tanking.
Technically, Bitcoin is within a bearish formation. Though there are occasional pockets of strength, buyers have failed to push prices higher, reclaiming $60,000, for example.
In the medium term, the immediate support line will be $49,000 or August lows. On the upper end, buyers must build momentum and reclaim $72,000.
It is this state of price action that’s slowing down bulls. Because of this, the analyst is bearish, claiming that the short-term trend will change only when BTC floats above $68,000.
Considering that prices are nearly $10,000 away from this reaction point, it might be a tall order for optimistic traders.
If buyers fail to conquer this resistance trend line and, preferably, rise above $72,000, the analyst thinks prices will continue “dipping.”
For now, the reaction between $55,000 and $60,000 could shape the medium-term trajectory. A sharp crash below $55,000 may trigger a panic sell, accelerating the dump toward August lows.
Eyes On Inflation, The United States Federal Reserve, and Spot ETFs
While fear reigns, analysts expect fundamental factors to support prices in the coming weeks. Top of the list is the recent evolution of inflation in the United States. As this key metric falls, the United States is expected to slash interest rates for the first time in over two years this September.
If the expansion of crypto prices after the intervention in 2019 through 2020 is anything to go by, Bitcoin prices will likely benefit.
With the approval of spot Bitcoin ETFs in January, the rising valuation would likely draw institutions. In turn, this would drive the coin to fresh highs; a major relief for holders. According to Soso Value, spot Bitcoin ETF issuers in the United States currently manage over $52.6 billion worth of the coin.
Feature image from Canva, chart from TradingView
