Bitcoin Price Action: What to Expect Next

Bitcoin’s recent price movements have caused concern among investors about what might come next. However, by analyzing key indicators such as the 200-week moving average, the Pi cycle top indicator, and the golden ratio multiplier, we can gain insight into potential support and resistance levels for Bitcoin.

The bearish tilt?

In recent weeks, the price of Bitcoin has fluctuated, dropping as low as $53,000 before stabilizing in the middle of our new $50,000 to $60,000 range. If this bearish price action continues and the price drops to the lows, then 200-week moving average heatmap (blue line), a historically critical support level, is currently near $39,000 but is quickly approaching $40,000 (white line). This round psychological level also aligns with the Bitcoin Investor Tool (green line), which has also converged with the 200-week moving average, could serve as potential downside targets.

Figure 1: Converging support levels at $40,000 if bearish price action continues.

Nearby targets

Above the current price, there are several important levels closer to the current price that investors need to keep in mind. The Pi Cycle Top indicator (upper orange line) suggests a crucial resistance level around $62,000 based on the 111-day moving average. The golden ratio multiplier (lower orange line) indicates that the 350-day moving average, currently around $53,000, has been a solid level of support during this market cycle, especially as it nears technical support of $52,000 and significant psychological support of $50,000. .

Figure 2: Nearby support between $53,000 and $50,000, with immediate resistance between $60,000 and $62,000.

More Chop?

In the short term, Bitcoin may well continue to range between the low $50,000 region and the $60,000 resistance, similar to the range we formed between $70,000 and $60,000, which led to fairly stagnant action in prices for most of 2024. Despite recent downturns, Bitcoin’s long-term outlook is still promising. In the past, Bitcoin has gone through similar periods of price fluctuations before eventually reaching new highs. However, this process can take some time, potentially weeks or even months, before a sustainable trend reversal occurs following periods of low volatility.

Figure 3: Monthly volatility drops quickly, potentially, as BTC finds a new range between $50,000 and $60,000. View live chart 🔍

Conclusion

For long-term investors, it’s important to keep calm and not get swayed by daily price changes. Overtrading often leads to bad decisions and losses, and the key is to stick to a strategy, whether that involves piling on support levels or taking profits at resistance.

Bitcoin’s recent price action hasn’t been ideal, but with simple technical analysis and a clear understanding of support and resistance levels, investors can prepare and react rather than overreact to natural market fluctuations.

For a more in-depth look at this topic, check out our recent YouTube video here: Bitcoin Price Action: What to Expect Next