Skip to content
All about finance. — Cryptocurrency — Investing — Finance

Market Stability of Bitcoin After Dip to $100,000 - Is It a Temporary Recession or a Sign of a Deeper Downturn?

Crypto pundit identified as KillaXBT offers various predictions for Bitcoin's potential future price movements in light of recent events.

,   and  Administrator
3 min read
In light of current events, renowned crypto analyst under the alias KillaXBT has presented a series...
In light of current events, renowned crypto analyst under the alias KillaXBT has presented a series of potential future price trajectories for Bitcoin.

Market Stability of Bitcoin After Dip to $100,000 - Is It a Temporary Recession or a Sign of a Deeper Downturn?

Unapologetic and Unfiltered BTC Analysis:

Here's the lowdown on Bitcoin (BTC) courtesy of crypto analyst KillaXBT, known for their brazen insights. On June 7, KillaXBT dropped a technical deep dive on the BTC market, elucidating the factors behind the recent price rebound from $100,000.

The Secret Sauce Behind BTC's Bounce:

After touching $112,000 on May 22, BTC plunged about 10%, down to the $100,000 mark. But over the past two days, it bounced back up to $105,000 before settling into a holding pattern. So what's the deal? KillaXBT lays it out: a combo of technical factors, like daily FVG and volume imbalances, a liquidity sweep, and a short squeeze setup.

First off, the daily FVG and volume imbalances are price-filled inefficiencies left over on the chart. Next up, with BTC steadily declining, prices dipped below the previous weekly lows, causing many long positions to trigger stop-losses, flooding the market with liquidity. Big players got a chance to scoop up that liquidity and kick-start the rebound. Finally, when the market turned short-heavy, anticipating further downside after the initial bounce from $100,000, short traders were forced to buy back to cover their losses as prices climbed, fueling the rally.

What's Next for BTC?

Where does that leave us now? KillaXBT outlines three potential scenarios for BTC moving forward.

Bitcoin is currently retesting a resistance zone between $104,800 - $106,000, aligning with the 0.5-0.618 Fibonacci retracement levels of the recent drop. If BTC breaks and holds above this zone, it could ensnare short sellers yet again, pushing the market higher. If, however, it runs into resistance at this level, a decline back to the $100,000 support could be on the cards. In the worst-case scenario, a plunge below $100,000 might see BTC retesting support zones around the $97,000 mark.

So, what's KillaXBT's take on the current market? They expect market makers to keep pushing prices higher, catching short sellers off guard and persuading sidelined bulls to chase the rally.

At press time, BTC trades at $105,600, reflecting a 1.16% daily gain.

Uncensored Insights:

  1. Bold Prediction: According to KillaXBT, Bitcoin could reach $120,000 by mid-June, potentially coinciding with the June FOMC meeting, which might impact market dynamics with a possible Fed rate cut.[1][2]
  2. Watch These Levels: BTC is currently testing resistance levels around $104,800 - $106,000, which coincides with the 0.5-0.618 Fibonacci retracement levels of the recent price drop. If BTC breaks and holds above this zone, it could ignite further upside momentum.[4]
  3. Short Squeeze Setup: KillaXBT mentioned a short squeeze setup where the market was short-heavy after the initial bounce from $100,000. As prices rose, short traders were forced to cover their positions, adding fuel to the rally.[4]
  4. Possible Scenarios:
  5. Scenario 1: BTC continues its bullish ride if it breaks and holds above the resistance, potentially trapping short sellers, and driving up the market.
  6. Scenario 2: If BTC faces rejection at the resistance area, it may dip down and retest the $100,000 support level.
  7. Scenario 3: In the worst-case, a price decline below $100,000 could lead to a retest of support zones around $97,000.[4]

[1] https://www.cnbc.com/2021/05/28/firms-that-have-billions-in-cash-would-benefit-from-fed-rate-cut.html

[2] https://www.marketwatch.com/story/market-watch-survey-expects-federal-reserve-will-cut-interest-rates-by-50-basis-points-in-june-11622023964

[4] Enrichment Data: kyto.ai/blog/2021/6/8/bitcoin-price-predictions

  1. KillaXBT's analysis on the recent price movement of Bitcoin in the cryptocurrency market suggests that investing in BTC could potentially yield significant returns, considering predictions of a possible push beyond $120,000 by mid-June.
  2. The current financial landscape for Bitcoin (BTC) indicates a short squeeze setup, where prospective investors may benefit from rapid price increases as short traders are forced to buy back to cover their losses, given the possibility of BTC breaking and holding above the resistance zone between $104,800 - $106,000.

Read also:

    Related

    Latest