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Will Bitcoin (BTC) Reach $51,000? By Crypto Daily
Crypto Daily: Languishes above $60,000 after visiting $58,500 yesterday. With $BTC’s chart now looking rather bearish, is the king of cryptocurrencies about to crash to the $51,000 support?
Negative feeling
Negative sentiment is flooding the cryptocurrency market. In the space of just one week the fear and greed index went from extreme greed (74) to fear (30). On top of all the other obstacles, the price of Bitcoin was dealt a severe blow to the solar plexus when it was announced that approximately $9 billion in BTC would be distributed to Mt. Gox’s creditors in July.
This had the effect of sending the price tumbling as much as 7% on Monday.
The price fell to around $58,500 before recovering later in the day. A rebound was witnessed on Tuesday and the price is currently at $61,300.
A test of new resistance?
Source: TradingView
However, $BTC price recently tested what was support at $61,500, and the concern is that the price will now resume the correction. Today’s close will be important to see if the price has managed to get back above this level. If so, we could perhaps see $BTC move back to the upper end of the range at $71,300.
The M pattern suggests a large downward movement
Source: TradingView
Failure to break above the $61,500 level would certainly suggest that the M pattern in the chart above could occur. The measured move for this pattern would take the price exactly to the $51,000 support. One can imagine that if the price started to fall, there would be a lot of selling that could help bring the price down to that level.
A particular bullish indicator
With all this in mind, there is still one particular bullish indicator that is set to have a say in the price in the coming weeks and months, and that is the Stochastic RSI. You can see in the chart above that the initial indicator crossover has turned downwards again. This means that at some point, renewed upward momentum should return. How long that will take, and whether it could last until the price returns to $51,000, is up to the market gods.
Disclaimer: This article is provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial or other advice.