The leading cryptocurrency surged above $80,000 again earlier today, reinforcing the idea that the resurgence could be the start of a true bull market.
However, some industry players have warned that unless BTC clears crucial resistance zones, it is still at risk of falling back to as low as $50,000.
The necessary conditions
Bitcoin has seen a clear bullish trend over the past few days, with its price increasing by 15% on a weekly scale. At one point it surpassed $81,000, with the catalysts for this rally detailed in our article here. At press time, the asset is trading at around $79,600 (per CoinGecko), while its market cap has surpassed $1.6 trillion.
Despite the positive performance and the prevailing optimism, the analyst known as Gerla on issued a note of caution. He believes that the price of BTC must clearly cross the $82,000 mark to change the bearish structure.
“By then, I would not rule out a deeper move below the $58,000 to $60,000 zone before the real breakout,” the analyst added.
User X Cyclop joined in with a similar thesis. They claimed that if BTC fails to sustain above $83,000, “we are still in a downtrend.” If this happens, the analyst expects a decline towards $50,000 by November.
Other analysts who have recently made bearish predictions include AlejandroBTC and Nonzee. The former argued that BTC was facing a major downturn that could bring its valuation down to $40,000, while the latter believed that the asset’s rise was triggered by a liquidity crunch and eyed a possible crash to $45,000.
The opposing theory
Analytics firm CryptoQuant also analyzed BTC’s recent performance. In fact, eight of its ten market indicators (including its bullish score) have entered bullish territory, suggesting that current conditions could represent the first phase of a major rally. At the same time, the company noted that BTC needed a daily close above its 365-day moving average (around $83,000) for confirmation.
User X Gordon didn’t mention any obstacles, just declaring that the bear market is over. He praised the investors who bought BTC for $60,000, saying the others were still ahead anyway.
Some signals, notably the amount of Bitcoin stored on exchanges, support the bullish outlook. Data shows that despite rising prices, investors have been abandoning centralized platforms in favor of self-custody methods over the past few days, reducing immediate selling pressure.
The article Bitcoin is not out of danger yet: BTC must break these crucial levels appeared first on CryptoPotato.