As the Bitcoin price consolidates below the $60,000 threshold, the market has been characterized by mixed indicators and technical levels, leading to a divided forecast and heightened uncertainty.
According to Bitcoin maximalist Mark Cullen, the current Bitcoin price action presents a complex technical picture. He suggests that the $57,500 level will likely be tested, and the key question is whether it will hold. Cullen believes it will, initially, before potentially breaking lower. He also emphasizes the importance of the $59,500 level, stating that if Bitcoin can push through, it would be a strong signal to heavily long the asset with a tight stop-loss below.
However, Cullen also warns of the potential for a sweep of the liquidity below the $54,500 level, which could pave the way for a move to new lows in the $40,000 range if that level is breached.
Crypto analyst Axel Adler also highlights that as Bitcoin's price currently trades below its 200-day simple moving average (SMA), this could lead to further bearish continuation. According to Adler, the next support level is the 365-day SMA at $50,000.
Compounding the technical uncertainty, the data intelligence platform Glassnode has reported that Swissblock's Bitcoin Fundamental Index (BFI) moved from positive to neutral territory. This shift reflects the uncertainty surrounding the Black Monday event and the post-Consumer Price Index (CPI) bull trap felt on the chain.
Glassnode co-founders Yan Alleman and Jan Happel note that while network liquidity has dropped into neutral territory, network growth has risen. This creates a complex picture of Bitcoin's fundamental outlook, with network growth seen as a strong bullish sign.
The rise in network growth indicates that more players interact with the Bitcoin network, creating a deeper pool of crypto-native capital to support the asset's long-term valuation. When writing, the Bitcoin price is $58,680, down over 2% in the last 24 hours.
