The surge caused by the SEC lawsuits has divided crypto analysts over the next levels of Bitcoin price. Some analysts confirm the bottom, while others argue that the correction will continue.
Bluntz says Bitcoin is on the verge of bullish action
Widely followed crypto analyst Bluntz suggested that the BTC price could exceed $28,800. In his recent analysis, he pointed out new buyers coming from the support level of a horizontal parallel channel. As seen in the chart below, the BTC price dropped to the $25,500 region in the SEC’s first lawsuit against Binance. He then made a strong move from this area towards the ceiling of the channel. Bluntz has this to say about this technical outlook in his latest analysis:
After eliminating its upside and now downside moves, BTC is once again back in the range and will be looking to buy pullbacks after the daily close targeting $28,800. I was expecting a slower recovery but this move is starting to look positively bullish again.
#btc now back into the range once again after taking out the upside and now downside, will be looking to buy pullbacks after the daily close targeting 28.8k+
was expecting more a slow grind up but this move starting to look impulsive to the upside again pic.twitter.com/hlQEduatxG
— Bluntz (@Bluntz_Capital) June 6, 2023
While Bitcoin was trading at $27,500 for about a week, Bluntz warned that it was showing bearish signs. On Wednesday, Bitcoin fell below $25,400, the level it last reached in March.
Bluntz’s recent positive comment on Bitcoin supports the view of another crypto analyst, Credible Crypto.
Credible Crypto says BTC price has bottomed out
The crypto analyst said that the BTC price has bottomed out after the drop amid the SEC lawsuits. According to the analysis he shared yesterday:
The liquidity wash target was met and completed perfectly, followed by a strong upward move right after back-to-back SEC lawsuits against Binance and Coinbase. If panic-driven liquidations were to occur, it would be the perfect time for a rally to begin. This would lead me to believe that we might have a bottom and lower targets would not be met.
Liq flush target 1 was met and tapped perfectly followed by a strong move to the upside right after back to back SEC lawsuits against Binance and Coinbase. If panic driven liq's were going to occur that would have been the perfect time for a flush to play out, leading me to… pic.twitter.com/ZDQd1eDZ22
— CrediBULL Crypto (@CredibleCrypto) June 7, 2023
Tone supports bullish outlook for Bitcoin on Vays
Another crypto analyst, Tone Vays, argues that the latest BTC correction offers bulls a chance to buy at discounted prices. The technical analyst said that Monday’s drop in Bitcoin was largely a news-driven event. According to Vays, the SEC lawsuit briefly frightened market players.
After the correction, Vays says that Bitcoin’s daily chart is now bearish as it trades below a key moving average. While he remains optimistic over the long term, he mentioned that recent events could bring the BTC price down to $23,500.
According to the crypto analyst, “If we break above this moving average in the next 24 hours, then it won’t matter. But if we don’t, there is a horizontal support at $25,000. Other than that, your long-term moving average is at $23,500. I would be very surprised if we drop below $25,000.”
BTC is currently trading at $26,647.76 above the supports that the analyst warned. While Bitcoin is showing signs of weakness, Vays says he expects BTC to bounce back in the coming days.
Not everyone is that optimistic
Nicholas Merten, one of the bearish crypto analysts, says that Bitcoin’s performance against the NASDAQ has weakened, indicating a bearish bias for the crypto king. As quoted by Kriptokoin.com, Merten says that this correlation weakens BTC’s price movements.
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