- Swissblock views the recent BTC price drop as profit-taking, likely signalling an upcoming rally.
- BTC finds strong support at US$60k, indicating a buying opportunity despite ongoing volatility.
- A corrective phase suggests possible breakouts above US$73k, though short-term choppy trading may persist as the market stabilises.
Market analysts Swissblock have stated in a recent report that the Bitcoin price dump may be an indication that sellers were taking some profits off the table. In a recent blog post, the analysts said that this likely points to a renewed rally.
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They added that despite ongoing volatility, the US$60k (AU$91k) level is providing strong support, suggesting a potential buying opportunity for investors.
The market has experienced a significant decline during the week, indicating ongoing volatility. However, amidst this volatility, the $60k level appears to be offering significant support. This presents a potential buying opportunity for players.
SwissblockAccording to the analysts, as the price recalibrates, sentiment has moved from bearish to neutral.
BTC’s Potential for a Breakout
Swissblock believes BTC is currently in a corrective phase, not a strong downtrend, as evidenced by a decrease in both price and volume – a bullish indicator suggesting reduced selling pressure.
They added that the market is stabilising after the recent surge, with potential for a breakout above US$73k leading to targets of US$75k and possibly US$80k.
While a significant decline seems unlikely, short-term choppy and sideways trading is expected over the next few weeks. This period of consolidation would allow the market to digest the recent 92% run-up over six weeks. Once this consolidation phase is complete, the market is likely to continue its upward trend.
SwissblockHowever, a drop below last week’s low could see a fall towards US$52k or even US$46k, they added. Despite this, a major decline is unlikely, and short-term sideways trading is expected, setting the stage for continued upward momentum after this consolidation, they concluded.
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Furthermore, market intelligence platform Santiment adds that trading volume has decreased 27% from last week. Only a few projects, such as TON, KAS and RUNE have been able to move against the broader market downturn.
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