The Bitcoin price prediction for the day considers the recent price action on the daily chart, which is starting to show a bearish pennant formation. This may portend the danger of a massive drop towards $24,000 if the pattern plays out as expected. The only factor that can prevent this is for some fundamental trigger to send Bitcoin prices above $42,000. But where will this trigger come from?
There is too much FUD (fear, uncertainty and doubt) among retail participants. Despite two high-profile Bitcoin purchases last week, the lack of bullish momentum may also signify that the major institutional players may just be waiting for such a drop to start accumulating. Many of them sold between $50k and $60k after acquiring the crypto when prices were below $30K. Transaction costs are at 6-month lows, and May’s 35% drop is the largest monthly drop in the coin’s recent history.
Here is the Bitcoin price prediction, which is conditional upon all parameters being fulfilled as stated.
Technical Levels to Watch
A similar price pattern is starting to emerge on Bitcoin and other correlated assets such as Litecoin. The daily chart shows a bearish pennant, with price rejection at the 37895 price level, where the upper border of the consolidation area is found. This action puts Bitcoin price on the path of a retest of 34445. A breakdown of this area breaks down the pennant and opens the door towards a projected measured move that could lead towards the 24020 mark (23 December 2020 high). This move would need to take out 31897, 29961 (19 May low) and 27594, to become a reality.
On the other hand, a closing penetration above 37895 opens the door towards the 40137 price level. A break above this point targets 41912, invalidating the bearish pennant. From here, 46090 becomes a new target, as does 47500 (23 April low) and 50000 (psychological resistance).