A Rebound at $65,000 or a Drop to $58,000?

Bitcoin faced huge opposition during the previous week’s trade, due to which the bulls failed to elevate the price beyond $74,000. This caused a massive drop below $66,000, while the bulls managed to elevate the levels above $68,000. However, they are trying extremely hard to push the prices higher; the bears are expected to cause a hindrance shortly. With this, the possibility of the BTC price testing the lower support emerges, before it makes a bullish move. 

With only 33 days for the Havling, the storm appears to have halted for a while. With this, the token has entered the range between April 2021 high and November 2021 high, between, $65,000 and $69,400. Now it’s time for the token to choose a direction and if it prefers to consolidate, then one can expect a continuation, as it did during the last year. 

The BTC price marked an all-time high and as expected, many began to buy the new ATH with the FOMO playing out at its best. Besides, the whales required a little liquidity, especially on Bitcoin, and hence a significant crash could be expected very soon. 

The Elliot wave theory appears to have worked well, with new highs formed at the end of Wave 5, which may not mark the end of the bull market. Further to this, a notable crash of over 25% may hinder the BTC price rally and may drag the levels below $60,000 initially. A strong support level at $59,449 is expected to offer a strong base, but if bulls become weaker at this stage, an extended pullback could even cause the price to drop below $50,000 and potentially hit $47,000, which may complete the first wave of the correction. 

Looking at the technicals, the higher and lower bands of the Gaussian channel have started to contract, suggesting that a trend reversal could be fast approaching. Besides, the +Di level has displayed a bearish divergence, supporting the bearish claim. Meanwhile, the RSI remains within the bullish range, struggling to sustain itself within the range. Therefore, the Bitcoin (BTC) price is required to sustain above the support zone and trigger a breakout to invalidate the bearish theory. 

Or else, a massive breakdown may follow if the token enters the support zone and hits the lower range at $63,000. 

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