BTC price has been hovering below $43,000 for a while and quickly retreated from the $49,000 threshold. Although Spot BTC ETF volumes are not bad, the high profitability has been signaling a decline on the on-chain side throughout the week. So what is expected at this stage? What awaits investors in the coming days?
Will Bitcoin Fall Against the Dollar?
The king cryptocurrency is still on an upward trajectory but is currently experiencing a price correction. The 50-day exponential moving average helped the bulls restrain the decline at the $42,120 region. However, there is a noticeable lack of demand as the RSI fluctuates in the neutral zone. Monday was a public holiday in the US, and the cumulative trading volume in crypto markets dropped by 50 percent.
Since the RSI has been creating lower peaks, a continuation of sales is likely. The first signal for a move that could trigger overselling could come with closures below $42,120. If the BTC price drops below the 50-day EMA, the current trend could target a maximum drop to $34,850.
While the price consolidated in the last quarter of the previous year, BTC had lingered in this region but has not visited it for a long time.
Bitcoin Predictions
Popular cryptocurrency analysts like Crypto Poseidonn highlight that the $25,000-$30,000 region is an important accumulation range, suggesting that overselling could continue down to there. Experts like Capo, who have been unsuccessful lately, are also focused on the same target.
Another analyst, Rhaonnor, suggests that the market has already priced in the ETF news and we could see a drop to as low as $24,000. According to the analyst, the priced-in rally will lead to a bottom in the $24,000-$30,000 range. However, if spot Bitcoin ETF volumes remain strong, this possibility could weaken.
Lucas Kiely, Chief Investment Officer at Yield App, and Christos Makridis, founder/CEO of Dynamic AI, are much more optimistic. According to them, we should see a new peak in the $50,000-$60,000 range.
“We will see a small pullback, but it won’t be as devastating as feared. It may take some time to exceed the $50,000 threshold. However, with the halving in June, the price will target higher levels.”
Bitcoin’s dominant bull flag formation also indicates the continuation of the uptrend. The target of the formation is at $56,200. To achieve this, we may need to see more, such as spot Bitcoin ETF-backed retirement funds. If companies integrate ETFs quickly, this will sustain the volumes at high levels.
