After Bitcoin BTC/USD tumbled below $67,000 in Friday's Asia trading session, technical analysts provided insight into where the crypto king may be headed in the short run.
What Happened: Pseudonymous cryptocurrency analyst Pierre tweeted that Bitcoin's recent decline after failing to breach the $71,500-$72,000 range and its fall to the 100-day moving average has led to three potential near-term price outcomes.
The first scenario could mirror Bitcoin's mid-January behavior on a four-hour chart, featuring a trend break leading to a gap fill at the 100-day moving average before regaining its footing.
In the second scenario, Bitcoin might see a consolidation or compression around the four-hour 100-day moving average and the four-hour trend lines, between $66,500 and $69,500, as the daily trend adjusts.
The third scenario warns of a potential drop below the four-hour 100-day moving average, potentially leading to a downward adjustment toward the four-hour 200-day exponential moving average in the low $60,000s.
In the short term, the two primary focuses are holding at the $66,000 level and reclaiming the $69,000 level and the previous cycle's all-time high (ATH).
The analyst also recommended potential plays based on these scenarios, including aggressive entries on certain cryptocurrencies that performed well during the recent dump.
Why It Matters: Bitcoin's recent performance comes in the wake of a significant price crash on Thursday, where it lost over 10% of its value, dropping to $67,567.70 in a brutal early Asian trading session.
This sudden drop sparked a debate among investors about whether the Bitcoin bull cycle may be headed for a top.
Price Action: At the time of writing, Bitcoin was trading at $68,325, down 4% over the past 24 hours, as reported by Benzinga Pro.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image generated using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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