Bitcoin Price Action Paints a Bearish Outlook for BTC Next Month: The Two Possible Scenarios
Bitcoin approaches a critical juncture as the month-end close looms, according to crypto analyst Zen from WiseAnalyze. The analyst has shared insights on potential short-term scenarios for the leading crypto. With just two and a half days until the weekly and monthly candle closures, traders are closely watching key price levels and market indicators.
Zen highlights the importance of the upcoming candle closures, noting that many traders tend to close positions and secure profits before the new month begins.
The analyst points out a number of short positions taken above the $62,000 level. These traders are mostly expecting a dip, with the $59.5K to $59.6K area identified as a possible target for taking profits.
What you'll learn 👉
Bitcoin (BTC) Price Forecast
Looking at the short-term outlook, Zen presents two possible scenarios. The first involves Bitcoin breaking above the $62,000 to $62,300 resistance level and pushing higher.
This move could trigger stop losses and liquidate short positions, creating substantial liquidity in the market. However, the analyst cautions that the longer-term implications of such a move remain uncertain.
Alternatively, Zen considers the possibility of a bearish turn in July. The monthly chart suggests the potential for a downward move before a bullish reversal later in the year.
“Don’t want to be the only bear prophet around here, but you can’t ignore the way month chart looks,” Zen remarks. Nevertheless, the analyst emphasizes that nothing is certain in the current market conditions.
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Key Levels to Watch
Zen provides crucial price levels for traders to monitor. A weekly close above $60,600 would increase the likelihood of a bounce from the range bottom. Conversely, the analyst highlights a number of liquidity pools that are situated above and below the present price.
Key resistance levels to monitor are $61,540, $62,590, $63,260, and $64,920. On the support side, important levels include $60,260, $59,440, $58,990, and $56,850. Additionally, Zen highlights historical price benchmarks such as the May close at $67,577 and the November 2021 low at $53,245.
Moreover, the analyst also offers a brief overview of market sentiment. The Fear and Greed index currently stands at 47, indicating an improvement from past readings. Therefore, this suggests a gradual shift towards a more neutral market outlook.
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