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Bitcoin’s Next Move: Why Hitting $52,500 Is Critical This Week

Bitcoin’s trajectory remains relatively unchanged, despite the swirling market sentiments hinting at a significant shift away from the leading cryptocurrency.

Bulls are gearing up for a potential breakout above $55,000, but there’s a looming threat of substantial bearish activity that could erase more than 20% of its recent gains.

The current trading setup for Bitcoin presents a bearish outlook both in the short and long term. The cryptocurrency is in a pre-halving phase and is currently retracing. Additionally, another bearish weekly close suggests the potential for a new pullback. Interestingly, Ethereum seems to be gaining momentum compared to Bitcoin, raising the possibility of a sentiment shift towards ETH and other altcoins, which could negatively impact Bitcoin’s price.

To avert a bearish scenario, Bitcoin must maintain its position above key support levels, consolidate in an upward trend, and establish strong levels to support a potential rally. Despite trading above $51,000 over the weekend, declining volume has led to decreased volatility and a sideways trend.

However, bulls are defending the local support at $51,000, indicating readiness for a potential upward move, possibly surpassing $52,000 in the near term. Yet, breaching resistance above $52,300 to $52,500 could trigger significant liquidations, potentially leading to a sharp pullback. Coinglass’s liquidation heatmap suggests that levels above $52,300 could result in over $75 million in liquidations, trapping bulls at local highs.

Furthermore, Bitcoin appears to be forming a bull flag pattern, indicating potential consolidation followed by a breakout. The cryptocurrency could consolidate and climb back above $54,000 or even reach $58,000 before facing a considerable correction. Analysts like Michael van de Poppe suggest that this correction could push Bitcoin’s price down to $40,000 to $42,000 post-halving.

With Bitcoin closing above $50,000 for the second consecutive week, there’s cautious optimism for an upward trend leading up to the Bitcoin Halving.

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  • bitcoinBitcoin (BTC) $ 74,769.00
  • tetherTether (USDT) $ 1.00
  • solanaSolana (SOL) $ 188.77
  • usd-coinUSDC (USDC) $ 0.999706
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