Bitcoin (BTC) has surged to new 18-month highs, but analysts are cautious and emphasize the importance of holding its latest support level to avoid a potential breakdown. The price of BTC reached $35,968 on Bitstamp, marking its highest level since May 2022 and surpassing last month’s local peak.
Market participants are now closely monitoring whether BTC can maintain support at the $35,000 mark. Popular analyst Mark Cullen believes that this level is crucial for the continuation of the upward trend. He stated, “Either hold and push on up or break down and we likely lose the major BTC uptrend in the short term.” Cullen further added that a close below $35,000 would flip the mood and potentially lead to a price dip.
Another trader and analyst, Credible Crypto, also anticipates a return to lower levels before the upward trend resumes. He identified around $34,600 as an “ideal downside target.” Credible Crypto noted that shorts shorting into support, along with stacked bids waiting, often results in a price squeeze and a reversal to the upside.
Despite the recent bullish momentum, bearish predictions for BTC’s price persist. Some analysts suggest that $20,000 could be a potential downside target, while others believe that $40,000 is just a matter of time. However, trader Jelle has identified a bullish megaphone pattern on longer timeframes, indicating a target around $48,000. He expects the momentum to gradually fade in a few weeks but asserts that the bull market typically gains traction after the halving event.
The next halving, which reduces the block subsidy, is scheduled to occur in April 2024. Jelle believes that the fight to break $48,000 may take some time but anticipates a stronger bull market after the halving.
It is important to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies involves risks, and readers are encouraged to conduct their own research before making any investment decisions.