Bitcoin – BTCUSD
The Bitcoin price prediction for the day considers the recent price action on the daily chart, which is starting to show a bearish pennant formation. This may portend the danger of a massive drop towards $24,000 if the pattern plays out as expected. The only factor that can prevent this is for some fundamental trigger to send Bitcoin prices above $42,000. But where will this trigger come from?
There is too much FUD (fear, uncertainty and doubt) among retail participants. Despite two high-profile Bitcoin purchases last week, the lack of bullish momentum may also signify that the major institutional players may just be waiting for such a drop to start accumulating. Many of them sold between $50k and $60k after acquiring the crypto when prices were below $30K. Transaction costs are at 6-month lows, and May’s 35% drop is the largest monthly drop in the coin’s recent history.
Here is the Bitcoin price prediction, which is conditional upon all parameters being fulfilled as stated.
A similar price pattern is starting to emerge on Bitcoin and other correlated assets such as Litecoin. The daily chart shows a bearish pennant, with price rejection at the 37895 price level, where the upper border of the consolidation area is found. This action puts Bitcoin price on the path of a retest of 34445. A breakdown of this area breaks down the pennant and opens the door towards a projected measured move that could lead towards the 24020 mark (23 December 2020 high). This move would need to take out 31897, 29961 (19 May low) and 27594, to become a reality.
On the other hand, a closing penetration above 37895 opens the door towards the 40137 price level. A break above this point targets 41912, invalidating the bearish pennant. From here, 46090 becomes a new target, as does 47500 (23 April low) and 50000 (psychological resistance).
