Over the previous two weeks, the price of Bitcoin (BTC) has been in a steady decline, which has fueled a general gloomy sentiment around the cryptocurrency sector. Despite the pessimism in the crypto market and around the flagship cryptocurrency, Captain Faibik, a popular cryptocurrency analyst and trader, predicted a significant bullish wave for Bitcoin.
This anticipated recovery could provide BTC with some much-needed relief, suggesting a potential recovery that defies the general negativity prevalent in the cryptocurrency world.
Bitcoin Expected to See a Potential Upside of 40% in the Short Term
That of Captain Faibik analysis cites market trends and signs that a strong rebound or further declines in BTC could be imminent. It draws attention to Bitcoin’s ability to overcome overhead resistance and find strong support at critical junctures, which could propel prices higher even if overall market sentiment remains cautious.
According to Captain Faibik, the price of the digital asset has been moving between the support and resistance levels of $60,000 to $70,000 over the past 4 months. So, the analyst claims that until BTC surpasses either of these levels, it is better to wait and observe its movement, as no definitive conclusions can be drawn at this point, noting that trading is a game of patience.
In the event of a successful breakout above the $70,000 resistance level, Captain Faibik believes that the digital asset could experience a bullish wave of between 30-40% in the coming weeks.
However, if Bitcoin breaks through both the weekly exponential moving average (EMA) 21 levels and the horizontal support level of $60,000, it could witness a deeper correction to reach the $50,000 threshold in the weeks to come.
So far, Captain Faibik has emphasized that Bitcoin bulls have full control of the market as long as the crypto asset stays inside the green box shown in its chart, implying that it is in a safe zone.
Overall, the expert’s prognosis advises investors and traders to remain cautious and take into account the possibility of a bullish rebound amid the general bearish movement of the market.
Increased BTC Accumulation Could Trigger Downward Pressure
As BTC demonstrates negative price movements, renowned cryptocurrency analyst Ali Martinez also offered insight into the trend: highlighting that BTC could face more downward pressure.
Martinez’s ideas are based on the importance BTC accumulations seen over the weekend, which could trigger a prolonged decline. According to Martinez, around 3.03 million BTC was acquired by around 5.45 million addresses between $64,300 and $70,800.
Related reading: Support Transforms Resistance: Bitcoin Retests $64,515 After Break – Will It Hold?
The analyst believes that this accumulation could create a significant obstacle to the supply of crypto assets, increasing the risk of a sharp decline. If the price of BTC continues to fall, these holders could sell to cut their losses, which could lead to persistent downward pressure.
Given that BTC is currently trading below the aforementioned level, it appears that Martinez’s prediction is gradually turning out to be true, with the asset’s market cap seeing a decline of over 4% in the past 24 hours.
Featured image from iStock, chart from Tradingview.com
