Has Bitcoin bottomed out? Analyst reveals key price levels to watch

In his latest technical analysis, senior cryptocurrency analyst Christopher Inks provides a detailed overview of the current Bitcoin market structure through comprehensive chart analysis. The chart, recently shared on X, shows the price trend of Bitcoin and several key technical indicators and levels, which may indicate a potential reversal of its bearish trend.

The analyst explained the price trend of Bitcoin through daily candlesticks over the past few months, pointing out important support levels (S1, S2) and resistance levels (R1, R2). As of writing, the trading price of Bitcoin is around $63,000, and the two downward trend lines represent a bearish market structure.

Inks said, "We still want to see a breakthrough above the above-mentioned level to indicate that the bearish market structure since ATH has been broken." This level is crucial as it is the convergence point of multiple technical elements: daily pivot points, upper descending green resistance line, and two-month range equilibrium.

Inks said, "Breaking through impulsively and closing above the daily support point / descending green resistance / convergence area above the EQ range of the past 2 months will indicate that the low point may have arrived." This suggests that overcoming this obstacle may signal the end of the bearish market structure that started from the historical high point.

If the resistance level is broken, the next major resistance level is at $65,541. After that, there may be $68,000. Inks said: "Breaking this level will break the bearish market structure since March 13." Then, R1 at $69,000 and R2 around $78,000 may be the next targets.

On the downside, the most critical support level is $56,522. It represents the lower limit that Bitcoin needs to maintain in order to prevent further decline, which would intensify bearish sentiment.

Inks clarifies the importance of this support and points out, "If we can now print higher lows, it would require breaking the level of $65,541 without printing new lows below $56,522, which would indeed provide support for the existing view of the bottom. A new ATH is coming."

This statement emphasizes the need for Bitcoin to stay above this support level to avoid further decline and stabilize within the current range. If BTC falls below the key support level, the price may drop below $56,000 (S1) and $50,900 (S2).

It is worth noting that this analysis is supported by various technical indicators. The Relative Strength Index (RSI) hovers around the neutral 50 level, indicating a balance between bullish and bearish forces. The position of the RSI suggests that the market is neither overbought nor oversold, and if the bullish signal strengthens, there is potential for an upward movement.

MACD currently shows that the MACD line is below the signal line, which is a traditional bearish signal. However, if the momentum changes, the proximity of these lines also implies a possible bullish crossover.

Random RSI also indicates the possibility of fluctuations in either direction, but it is particularly useful for determining when Bitcoin may enter overbought or oversold areas, which is crucial for predicting short-term price reversals.

Inks also commented on the market dynamics, saying, "The positive factor in this range is the continuous decrease in supply in the overall bearish market structure." This observation suggests that the combination of supply reduction and maintaining key support levels may help stabilize and potentially increase the price of Bitcoin.


(DataSource: Jake Simmons)