Bitcoin experiences a rebound of 6.52%, rising from a low of $53,898 to $56,979, indicating a positive short-term momentum. However, despite surpassing the $56,000 mark, analysts are cautious about potential declines, suggesting a possible drop to around $47,000.
Currently, the global cryptocurrency market is witnessing a resurgence, with Bitcoin bouncing back from a recent dip of $53,489 and reaching above $56,000. As of now, Bitcoin is trading at $56,650, reflecting a 3.87% increase in the past 24 hours. This recovery is attributed to significant inflows of $143.1 million into U.S.-spot Bitcoin ETFs, which highlights renewed investor interest.
Furthermore, Bitcoin’s price is higher than the 9-day simple moving average (SMA) in the 1-hour BTC/USD trading pairs. This typically indicates a short-term bullish trend or positive momentum in the market, suggesting that Bitcoin’s recent price movements have been stronger than the average price over the past nine days.
Despite this recovery, altcoins currently dominate the market, causing Bitcoin’s dominance to slip to 53.87%.
The question remains whether Bitcoin can sustain its recovery above $56,000. Prominent crypto analysts have varying opinions, with some suggesting that the market remains composed, citing stable on-chain metrics. On the other hand, analysts like Ali express concerns about Bitcoin’s market stance and anticipate a potential drop to approximately $47,000.
Ali’s analysis focuses on Bitcoin’s support levels, which he considers inadequate to sustain a prolonged bullish momentum. He emphasizes that for Bitcoin to reignite a bull market, it must “close and maintain above $61,000.” However, given the current market conditions, achieving this milestone seems increasingly speculative.
If Bitcoin continues its upward momentum and remains above the $56,000 mark, it will encounter resistance levels at $57,580, followed by $60,000. Breaking above these levels could propel Bitcoin towards $61,890 and $62,500.
Conversely, failing to maintain above $56,000 could push Bitcoin towards key support at $55,300, potentially leading to a decline to the $53,000 zone. Breaching this support level may result in Bitcoin entering a bearish phase, aligning with expert predictions of a drop to $47,000.
