After a massive surge reaching a high of $42,369.39 on Saturday, Bitcoin pulled back a bit Monday morning to as low as $38,978.57, fueling concerns of a further slide.
The digital asset propped up a bit late on Monday to $39,215.04, as of this writing, according to Coindesk. Moreover, it might be climbing its way back to its weekend highs. As such, a number of crypto analysts are forecasting a further breakout of the world's largest cryptocurrency, while others are hinting an impending decline.
Bitcoin Resistance Confirmed, Breakout Certain With Immense Buying Opportunities
According to a Forbes report, Fairlead Strategies, LLC founder and managing partner Katie Stockton said that a "Fibonacci retracement level near $42.6K remains intact as resistance." She added once that level is breached, "the targeted level becomes $51.1K based on the Fibonacci levels."
Token Metrics chief technical analyst William Noble added that Bitcoin has been facing a "clear' substantial resistance "near $43K." He furthered that the pullback on Monday to $39,000 is "an opportunity to get involved if you missed the (Bitcoin) rally." The expert also played down the decrease, emphasizing that it merely a pause that should refresh sooner rather than later.
BCB Group head of trading Mark Warner also confirmed to Forbes a resistance at around $42,000, and he validated the breakout that should "provide buying opportunities for those who missed out."
Bitcoin to Suffer Steep Decline If BTC Fails to Break Above Resistance Level of $42,000
While these analysts concentrated on Bitcoin's resistance and bullish opportunities, other experts see the digital asset suffer significant losses.
StocksChart.com senior technical analyst Julius de Kempenaer stressed to Forbes that while Bitcoin has "respected the technical boundaries" of a trading range between $30,000 and $42,000, the risk still appears to be on the downside if BTC does not break above the upper boundary.
Meanwhile, Okcoin cryptocurrency exchange chief operating officer Jason Lau said in the Forbes report that Bitcoin has been stuck in the $30,000-$42,000 range for the past few months with that expected resistance of $42,000. He shared his observation that the digital currency last hit the range in mid-June and fell 30 percent the following week.
Lau also stated that "key metrics around BTC futures and premiums look similar to the last time," thus emphasizing that unless Bitcoin makes a "clean price break above $42,000" together with a "strong uptick in BTC futures funding rates," a breakout of the range could not be confirmed.
Fortune reported that in July, Bitcoin rose 40.7 percent from its low on July 20 of $29,308 to a high of $41,598 on July 31. By mid-morning on Monday, it dropped 5.6 percent from its peak to $39,396. On July 22 and 23, which are considered Bitcoin's least volatile days, variances from low to high were 2.8 percent and 2.9 percent. Bitcoin's biggest leap came on July 26 when it rose 17.7 percent over speculation that Amazon was considering a venture in digital currencies.