Bitcoin’s price trajectory remains bearish, with a potential downside target of the $49,000 liquidity zone. Despite a recent recovery back to $58,000, technical analysis suggests that Bitcoin may struggle to surpass crucial indicators and could revisit lower price levels. Market expert Jackis highlights the bearish D1 trend indicator on the 12-hour chart, emphasizing the need for Bitcoin to reclaim the $64,000 zone to reverse the prevailing bearish daily trend. However, there are encouraging signs, such as significant inflows to Bitcoin exchange-traded funds (ETFs) and long-term holders accumulating more BTC.
Despite the recent recovery, the technical analysis indicates that the bearish trend remains. Even if Bitcoin reaches $60,300, the D1 trend indicator remains bearish unless it manages to recapture the $64,000 zone, which has proven to be a major resistance. Jackis’ analysis suggests a target range for the next daily leg between $51,000 and $49,000, with a pivotal level at $63,800 that bulls must target to reverse the trend.
However, there is potential for a reversal as “dip buyers” have returned, leading to significant inflows into the US Bitcoin ETF market. This has supported the Bitcoin price and prevented a deeper retracement, with consecutive days of inflows managing selling pressure from the German government’s holdings. Data from JPMorgan shows that spot Bitcoin ETFs witnessed inflows of $882 million, marking the highest inflows since May 23. BlackRock’s IBIT ETF and Fidelity’s FBTC led the surge in inflows, while Grayscale’s ETF experienced outflows.
Supporting the bullish outlook, crypto analyst CryptoSoulz found that long-term holders have accumulated over 85,000 BTC in the past 30 days. This accumulation by long-term holders indicates confidence in Bitcoin’s potential and is seen as a bullish catalyst for the price. CryptoSoulz, like Jackis, suggests that Bitcoin is finding support in the higher time frame (HTF) and anticipates a bounce from this level. However, if Bitcoin fails to hold above the $54,000 zone, the next level of support is expected at $49,500.
At the time of writing, the Bitcoin price stands at $58,300, showing a modest 0.7% increase in the 24-hour time frame as BTC seeks to consolidate above the crucial levels mentioned.