Bitcoin (BTC) has regained significant momentum over the past week, breaking free from the $49,000 lows it reached during the broader market crash on August 5. Since the past seven days, the flagship cryptocurrency has surged over 8%, climbing above the critical $63,000 level and reaching as high as $65,000 on Sunday.
This latest rally has crypto analysts optimistic about Bitcoin’s prospects for further upside, with some eyeing a potential move towards $68,000 soon. However, not all technical experts are convinced the path forward will be completely smooth sailing.
Two Paths To $68,000 Bitcoin
Crypto analyst Doctor Profit, who has a notable track record of accurately predicting price movements dating back to BTC’s $50,000 territory during the August 5 crash, is now targeting $68,000. A detailed report outlines that the key lies in Bitcoin’s interaction with the $63,900 line on the 6-hour chart.
According to Doctor Profit, there are two different paths for Bitcoin’s journey to $68,000. The first is for Bitcoin to maintain its position above the $63,900 level, paving the way for a quick rise to the projected $68,000 price.
The second scenario involves a temporary dip below $63,900 followed by a retest of the 50-day exponential moving average (EMA) at $61,900 before rising above $64,000 and moving towards $68,000.
This latter scenario is seen as the more likely outcome, with Doctor Profit assigning a 65% probability to a retest of the $61,900 EMA support level before a push towards $68,000.
What Open Interest Heatmap Suggests
Lending credence to the possibility of a short-term pullback, technical analyst Ali Martinez observes that Bitcoin appears to be trading within a parallel channel on lower time frames. Martinez suggests a break below the $63,500 support could see BTC drop as low as $62,800 before potentially bouncing.
Adding another layer to the analysis, the trading platform Hyblock highlights the importance of the Open Interest (OI) Heatmap in gauging market sentiment.
The current open interest of $61,000 suggests a possible correction on the horizon, as the platform pointed out that BTC usually chases these zones, and this possibility increases after Bitcoin’s 8% surge last week.
While this may indicate a short-term pullback, a successful retest of lower support levels could set the stage for a strong recovery and a retest of higher resistance levels, assuming demand remains consistent.
At the time of writing, thelargest cryptocurrency on the market is trading at $63,450, recording losses of over 1% in the 24-hour time frame after hitting the $65,000 mark late Sunday for the first time since August 1.
Featured image from DALL-E, chart from TradingView.com