Bitcoin price seems to be consolidating again after the recent market sell-off. This development causes increased uncertainty in the market. However, analysts do price analysis to give investors an idea. Read on to find out what levels BTC price could see in the coming weeks.
Bitcoin price in consolidation
Bitcoin price saw a huge selling pressure at $24,664, in the center of the $17,578 to $31,749 range. It’s been denied here more than once. Then, BTC fell by about 20% and tested $20,750 for the third time since last month. In the ongoing consolidation environment, there are two highly probable forecasts:
- Bitcoin sweeping the $20,750 level followed by a rapid price recovery.
- A drop below $20,750 is possible. In this case, it revisits the June 19 low at $17,578.
Ethereum Merge has potential to rally BTC
Investors should consider the upcoming Merge update for the Ethereum network on September 15. Accordingly, the first scenario is more likely to occur. As we reported as Kriptokoin.com, the rally led by Merge seems to have caused the explosion of many altcoins such as a bull run. As the scheduled date approaches, capital will most likely flow from BTC to ETH and other altcoins.
This will cause the Bitcoin price to aimlessly consolidate around $20,750. However, if the capital is split between BTC and ETH, a quick sweep and subsequent recovery seems like a reasonable outcome. The bounce will cause Bitcoin price to revisit the middle resistance level at $22,500. If the buyers continue to maintain the pressure, this recovery is likely to be extended to $23,175.
What if the alternative scenario does happen?
However, it is possible that Bitcoin price is ignoring the upcoming Merge upgrade. If this happens, if it turns the $20,750 support level into a resistance barrier, it will confirm a bearish bias. In such a case, higher timeframe charts are important. The daily outlook for BTC shows that it has been consolidating and collapsing since the beginning of 2022. The recent crash pushed the Point of Control (POC) to $21,177, the highest trading volume since June 10.
A break of this level will result in a drop of 10% to roughly $19,000. Even with this bearish outlook, this level is the last support point for Bitcoin’s price. It’s unlikely to happen in the next few weeks. However, the failure of the support area mentioned above will lead to a disastrous drop in these support levels. After $ 19,000, 15,500, 13,500 and 11,900 dollars are on the cards.
What’s on the upside for Bitcoin?
While these scenarios described above range from slightly bearish to extremely bearish, let’s take a look at the bullish outlook for BTC. This narrative will emerge if Bitcoin price rises from its current position at $21,327 and turns the $25,000 hurdle into a support base. Such a move would invalidate the decline theses. Doing so will indicate that the bulls are back. It will also indicate that the 45% slump in the first half of June is ready to be reversed.
In such a case, BTC needs to clear previous highs at $32,384 and form a new one. This development will be the first confirmation of a bull rally. In such a case, it should seek a lower low relative to the low at around $20,750. If successful, this move will lead the coin to rise to the next resistance levels of $35,000, $45,000.
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