Bitcoin, the leading cryptocurrency, is currently priced at $63,600 and has seen a 2% increase throughout the day. Despite facing a period of negativity recently, Bitcoin has managed to stay above the $60,000 mark, even though it has set lower resistance levels. With this in mind, is it feasible for Bitcoin to reach a target of $95,000?
Will Bitcoin’s Price Increase?
Even during bullish market periods, Bitcoin’s price can experience significant drops. After a strong first quarter, BTC is now going through one of these declines. Although the price fell below $60,000, it has managed to maintain a crucial support level. The $65,000 resistance level is currently preventing further losses and keeping new peaks at bay.
What do the indicators say?
The Reserve Risk indicator is close to exiting the ideal green zone. This indicator measures the appetite and confidence of long-term investors and suggests that the current price is attractive, supporting the likelihood of an upcoming price increase.
The Net Unrealized Profit/Loss (NUPL) indicator is also in a zone that historically indicates the start of rallies. This suggests that if the Federal Reserve provides positive signals regarding easing, investors may be inclined to bet on a rise in Bitcoin’s price.
What Will Bitcoin Be Worth?
Following the recent rally, the ongoing consolidation process has resulted in a flag formation on the chart, indicating a significant target. Despite the negativity and consolidation, similar periods in previous cycles have been forgotten as Bitcoin reached new highs. Historical data suggests that this disheartening period will likely be no different.
The target indicated by the formation points to a price increase of over 42% to reach $95,000. However, for this to happen, Bitcoin’s price needs to surpass the $71,800 resistance level permanently and break free from its narrow trading range. Failure to do so could result in closures below $63,000, leading to weaknesses at $61,000 and $58,000. Even if the uptrend continues, closures below $58,000 could indicate a prolonged period of stagnation for Bitcoin.
Disclaimer:
The information provided in this article should not be considered investment advice. It is important for investors to be aware of the high volatility and associated risks of cryptocurrencies and to conduct their own research.