The correction of the first cryptocurrency may continue up to the $44,000 mark. This opinion was expressed by technical analyst and head of Factor LLC Peter Brandt.
Has Bitcoin completed a double top?
Yes or no????
If so, the minimum target is $44,000
What do you think?$BTC pic.twitter.com/EpzeihHJtF— Peter Brandt (@PeterLBrandt) July 7, 2024
The expert wondered whether Bitcoin had completed the “double top” pattern on the daily chart. According to his calculations, the upper level of this pattern is around $72,000, and the lower level is at $43,970.
During the discussions under the post, Brandt admitted that the current deviation from the peaks of the “top” is only 10%, and the model itself suggests a drawdown of 20%. Therefore, the analyst allowed for the end of the bearish movement or its possible continuation depending on the further dynamics of digital gold.
On July 5, Bitcoin fell below $54,000. However, the asset recovered above $56,000 the following day.
At the time of writing, digital gold is trading at $57,200, up 2.5% in a day.
Possible bottom
IN weekly report Bitfinex analysts have indicated that Bitcoin is likely to reach a local minimum, as indicated by market data.
In their opinion, the fall was facilitated by news about compensation to Mt.Gox creditors and the movement of bitcoins confiscated by the German government. However, the market realized that we are not talking about such a significant volume of assets, the experts emphasized.
In addition, the researchers recorded a narrowing of the spread between the implied and historical volatility of the first cryptocurrency. This means that investors expect more stability.
Bitcoin Implied and Historical Volatility. Data: Bitfinex.
The large number of “late shorts” also indicates a lack of clear confidence in any market direction, Bitfinex added.
Analysts noted that for the first time since May 1, the funding rate for Bitcoin perpetual contracts has become negative.
Bitcoin Perpetual Contract Funding Rate. Data: Bitfinex.
The combination of these factors – oversold conditions, negative funding rates and a rebound in SOPR – often signals a bottom, according to Bitfinex.
Some experts have allowed Bitcoin to collapse to $50,000. In their opinion, the sharp fall of the asset will not be limited to the current level due to the change in sentiment.
At the same time, Standard Chartered analysts predicted a new historical maximum in the price of the first cryptocurrency in August and subsequent growth to $100,000 by the US presidential elections in November.
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Source: Cryptocurrency
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