Bitcoin, the king of cryptocurrencies, is currently valued at $63,600 and has seen a 2% increase for the day. Despite a period of negativity, Bitcoin has managed to stay above the $60,000 mark, although it has set lower resistance levels. Given the current outlook, is it feasible for Bitcoin to reach a target of $95,000?
The price of Bitcoin can experience significant drops even during the exciting days of bull markets. After a strong first quarter, Bitcoin is now going through a decline. However, it has managed to maintain a crucial support level after falling below $60,000. The $65,000 resistance level is currently preventing larger losses and keeping new peaks at bay.
So, what do the indicators say? The Reserve Risk indicator is nearing the ideal green zone, which measures the appetite and confidence of long-term investors. This suggests that the current price is attractive and supports the likelihood of an upcoming price increase.
The Net Unrealized Profit/Loss (NUPL) indicator is also in a zone that historically precedes rallies. This indicates that if the Federal Reserve provides positive signals regarding easing, investors may be willing to bet on a rise in Bitcoin’s price.
Following the recent rally, there is a flag formation on the chart, suggesting a significant target. Despite the post-halving negativity and consolidation process, historical data suggests that this period of stagnation will likely be forgotten as new highs are reached.
The target indicated by the formation is an increase of over 42% to $95,000. However, for this to happen, the price of Bitcoin needs to surpass the $71,800 resistance level and break free from its current narrow range. If it fails to do so, closures below $63,000 could lead to weaknesses down to $61,000 and $58,000. Even if the uptrend continues, closures below $58,000 could indicate a longer period of stagnation for Bitcoin.
It’s important to note that the information in this article does not constitute investment advice. Cryptocurrencies are highly volatile and carry a significant amount of risk. Investors should conduct their own research and be aware of the risks involved.
