Bitcoin, the king of cryptocurrencies, is currently priced at $63,600 and is experiencing a 2% increase for the day. Despite weeks of negativity, BTC has managed to stay above the $60,000 mark, although it has set lower resistance levels. Considering the current outlook, is it possible for Bitcoin to reach a target of $95,000?
The price of Bitcoin can go through significant drops even during the thrilling days of bull markets. After a successful first quarter, BTC is now going through one of these declines. Although the price dropped below $60,000, it has managed to hold onto a crucial support level. Currently, the $65,000 resistance is preventing larger losses and keeping new peaks at bay.
What do the indicators say? The Reserve Risk indicator is nearing the ideal green zone, which measures the appetite and confidence of long-term investors. This suggests that the price is at an attractive point, supporting the likelihood of an upcoming price increase. Additionally, the Net Unrealized Profit/Loss (NUPL) indicator is also in a zone that historically leads to rallies. If the Fed provides positive signals regarding easing, investors may be inclined to bet on a rise.
After the recent rally, a flag formation has appeared on the chart due to the ongoing consolidation process, indicating a significant target. Although the post-halving negativity and consolidation may lead to dull days, historical data suggests that this discouraging period will be forgotten with new highs.
The target set by the formation suggests a potential increase of over 42% to $95,000. However, for this to happen, the BTC price needs to surpass the $71,800 resistance permanently and break free from the narrow range it is currently in. Failure to do so could result in closures below $63,000, which could lead to weaknesses down to $61,000 and $58,000. Even if the uptrend continues, closures below $58,000 could indicate longer periods of stagnation for Bitcoin.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
