Crypto analyst Kaz has called the local Bitcoin top, stating that the leading crypto has little room to the upside. The analyst also explained why BTC is now likely to drop below the psychological $60,000 level, which would mark a new low for the crypto asset.
Bitcoin Top About To Form As Price Eyes Drop Below $60,000
In an X post, Kaz said Bitcoin is very close to a local top, despite market participants predicting a sustained rally to $90,000. He noted that the last local top formed around $97,000, when people were calling for a rally to $108,000, but it did not happen. Instead, BTC was rejected from the daily Fair Value Gap (FVG) and recorded a massive decline.
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Kaz stated that the same price action is playing out again, with Bitcoin very close to the local top and a daily FVG in place. The analyst predicted that BTC might be rejected from the daily FVG and form a local top between $80,000 and $82,000. He also mentioned that the final range won’t dump in an instant but would rather be a slow bleed.
The analyst further pointed to the first week of May as when the Bitcoin top could form. Commenting on the current price action, he noted that BTC has only swept the highs and has formed equal lows on the lower timeframe, which is very likely to get swept. His accompanying chart showed that BTC could drop as low as $56,000 on the next move lower. Meanwhile, Kaz revealed that he will be adding to his short if BTC sweeps the $80,000 range.
BTC No Longer In A Bear Flag
In an X post, crypto analyst Colin stated that Bitcoin remains in the yellow channel, with $81,000 as resistance at the upper boundary. The analyst noted that a break above this upper boundary would be bullish while a break below the lower boundary at $72,000 would be bearish. He added that if BTC continues to gradually climb within the channel, it will bump into overhead resistance between $80,000 and $86,000.
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Colin warned that this is where Bitcoin will struggle to sustain its upward momentum and will likely find a local top, completing the relief rally. He explained that this range is highly likely to be a rejection point for BTC, as there is a convergence of overhead resistance levels, the 200-day moving average (MA), and the upper range of the channel. His accompanying chart showed that BTC could drop to around $66,000 when this relief rally is over.
At the time of writing, the Bitcoin price is trading at around $75,600, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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