Bitcoin's Stall at $52K May Foreshadow Imminent Pullback Before Higher Prices: Swissblock
Bitcoin's uptrend is supported by strong trading volumes, a bullish sign for continuation, a FalconX report said.
Bitcoin's Stalling Momentum
According to Swissblock, Bitcoin's stalling momentum at the $52,000 resistance could be a signal of an "imminent pullback". The rapid rise of 33% in just a few weeks is seen as unsustainable.
However, the uptrend could still continue, as 10x Research has set a $57,500 price target for the next leg higher.
Resistance Level and Potential Pullback
Swissblock analysts mentioned that the $52,000 level serves as a significant resistance point on long-term charts. It has previously capped prices in September and December 2021, and is now a barrier for the rally to continue.
Given the recent rapid ascent, a pullback is deemed necessary and imminent. This pullback, however, could present a buying opportunity as long as Bitcoin holds its support near $47,500.
Supporting Factors for Higher Prices
Institutional crypto exchange FalconX highlighted the "exceptional" trading volumes that support Bitcoin's uptrend. These volumes resemble those seen during the 2023 March regional banking crisis, indicating a strong market.
10x Research analyst Markus Thielen also expects higher prices, setting a target of $57,500. He mentioned strong liquidity and increasing demand for bitcoin futures as factors driving this projection.
