Bitcoin is back above $70,000 again: Crypto Analysis of March 26, 2024

After recording a drop of more than 10%, Bitcoin bounced back and regained the $70,000 mark. Let’s analyze the future outlook for BTC price together.

Bitcoin (BTC) Situation

After continuing to decline, Bitcoin reached a low around $60,000. It was from this level that a renewed interest from buyers manifested, leading to a price increase to $68,000. It then required additional buyer support near $62,000 to eventually break through the $70,000 threshold. Thus, Bitcoin’s short-term trend appears to be reversing. It is notable that it has once again surpassed the key value area of $67,000. The next one is located around $72,000.

At the time of writing this article, the Bitcoin price is trading at around $70,500. It seems to be moving higher again compared to its 50-day moving average, which is itself trending upward. This suggests a continuation of the current trend. The dynamics of the mother cryptocurrency have, meanwhile, rebounded as expected. This rebound is illustrated by both the oscillators and the price itself.

The current technical analysis was performed in collaboration with Elie FT, an enthusiast investor and trader in the cryptocurrency market. Today trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Live sessions, educational content, and mutual assistance about financial markets in a professional and welcoming atmosphere.

Focus on derivatives (BTCUSDT)

The open interest in BTC/USDT contracts followed the direction of its price, which is rising. It has increased by 20% since Bitcoin surpassed the $62,000 mark. This increase has been accompanied by subtle liquidations, predominantly on the sell side, as well as a slight rise in the funding rate. This indicates that the interest in Bitcoin perpetual contracts is primarily oriented towards buying.

The liquidation heatmap for the past month shows that BTC/USDT has recently crossed a zone of strong liquidation highlighted in the analysis of March 19, 2024. It was located in the price range between $69,000 and $71,000. It now appears that buyer interest persists, given the price’s ability to maintain this level. Currently, the zone around $75,000 can be highlighted. Below, the area around $63,000 is nonetheless notable. As the market approaches these levels, we could witness a massive trigger of orders, which would potentially increase the volatility of the cryptocurrency. Therefore, these zones represent major points of interest for investors.

Scenarios for Bitcoin (BTC) Price

• If Bitcoin price manages to hold around the $65,000 mark, we could envisage a new ATH (All-Time High) at $75,000. The next resistance could be more difficult to pinpoint, however, the $78,000 can be highlighted. Then, without being overly optimistic, the $80,000 mark is noted. Reaching this last level would signify an increase of around +13%.

• If Bitcoin price fails to maintain above $65,000, we could envisage support from buyer interest around the $60,000 zone. The next level to consider if the downtrend continues would be around $58,000. At this stage, it would represent a drop close to -17%.

Conclusion

Bitcoin has reversed its short-term downtrend, breaking through $70,000 thanks to a resurgence of buyers, with indicators suggesting a possible extension of this last move. As positive as this may seem, it remains crucial to closely observe the price reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant for potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly in response to other more fundamental factors.