The price of Bitcoin (quotation BTC) has fallen 6% in the past 24 hours, currently trading at $ 39.743. The falling price puts an end to Bitcoin's 10 consecutive days of earnings, its longest winning streak since 2013.
Earlier today, the largest cryptocurrency in the world by market cap was trading as high as $ 42.563. But its inability to hold above $ 42.000 means it may continue to struggle to rise.
Where to go next for the price of Bitcoin?
Prediction of cryptocurrency price movements is not a precise science. To say the least. However, technical analysis can offer some useful insights by studying how prices have moved in the past and, therefore, how they might move in the future.
On this front, analysts cited by CoinDesk believe that Bitcoin will continue to see strong resistance at the low end of the US $ 40.000 until it moves decisively and holds higher.
According to digital asset firm Eqonex, “BTC is potentially in a rangebound until it breaks down and closes above $ 42.000. Trendline support rose to $ 38.200, with $ 36.500 as the next support.
Jonathan Cheeseman, head of sales for cryptocurrency exchange FTX, seems to agree on the importance of the US $ 42.000 price target.
Referring to what was still an ongoing bull run on Saturday, Cheesman wrote (quoted by Bloomberg): “A run like this certainly suggests some support for the flow. Of course, now it has to stabilize here - and above the high of May 20 would be further confirmation ”.
May 20 saw Bitcoin trading above US $ 42.500.
What will it take to get back above $ 64.829? In mid-April, Bitcoin hit an all-time high of US $ 64.829. Despite the 10-day rally that just ended, the price remains 39% down from that record.
So what will it take to get the token back into record territory? According to Pankaj Balani, CEO of the cryptocurrency exchange Delta Exchange, it boils down to higher prices that generate even higher prices. Balani wrote:
“It won't be surprising to see Bitcoin expand the trading range from $ 30.000 to $ 42.000 upwards and attempt $ 45.000. However, exceeding $ 50.000 will require some work for Bitcoin. Only a one-off break above $ 50.000 would attract new flows and signal a shift in the broader direction for the market ”.
With the price currently heading in the opposite direction, it remains to be seen when - or even, if - the breakout above $ 50.000 will occur.