Bitcoin’s Bullish Outlook: Two Scenarios for the Week Ahead

Bitcoin saw a slight 0.67% price increase in the last 24 hours, briefly touching the $118,000 mark. This follows a 48-hour rebound after a 4% correction earlier last week. Looking ahead, renowned analyst KillaXBT (@KillaXBT on X) offers two potential scenarios.

KillaXBT’s analysis, shared on July 26th, highlights Bitcoin’s bounce from a key demand zone around $115,000, an area they deemed ideal for long entries. A CME gap near $117,071 could act as a short-term price magnet. CME gaps form when Bitcoin’s spot market price moves significantly while CME futures markets are closed.

Scenario 1: A Bullish Start

Scenario 1 predicts a bullish week opening, with Bitcoin forming a higher low by potentially sweeping liquidity around $116,000. Holding this price level would trigger new long positions, with stop-losses below the previous week’s low.

Scenario 2: A More Aggressive Play

Scenario 2 depicts a more aggressive move, involving a double sweep of last week’s wick low near $114,800, resulting in a significant liquidity grab before a bullish reversal. However, KillaXBT leans towards Scenario 1, given the recent liquidity grab at $115,000.

The Invalidation Risk

KillaXBT identifies a key invalidation point: if the price fails to hold above recent wick lows after a retest, Bitcoin could fall to deeper imbalance zones between $112,000 and $113,800.

At the time of writing, Bitcoin is trading at $117,900, showing a 0.21% increase over the past seven days. Stay tuned for updates!

Featured image from Pexels, chart from Tradingview