Bitcoin Strikes A Chord At The Bottom, But Can It Clear This Major Resistance?

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As a seasoned crypto investor with a few years under my belt, I’ve learned that the price action of Bitcoin is never a straightforward affair. The recent 6% surge above the $53,000 mark has brought some optimism back into the market, but it’s important to remain cautious and not get carried away by short-term gains.

Since surpassing the $53,000 mark on July 5, Bitcoin‘s value has risen by approximately 6%. At present, this digital currency displays signs of short-term growth. However, it’s essential to remind ourselves that Bitcoin is not completely out of potential danger yet.

Based on Captain Faibik’s latest assessment, Bitcoin might face significant hurdles preventing it from surpassing $60,000 this month. For a convincing bullish trend to set in, the cryptocurrency must first clear the $61,000 threshold.

Bitcoin Needs To Clear Major Resistance

The price of $61,000 for Bitcoin isn’t randomly chosen; instead, it holds significance based on Bitcoin’s price movements over the last two months, as indicated by crypto analyst Captain Faibik’s recent analysis.

On a 4-hour Bitcoin/TetherUS chart posted on social media platform X, an analyst identified two opposing trendlines drawn from Bitcoin’s brief spike above $70,000 on June 6. Subsequently, Bitcoin’s price drop resulted in successively lower peaks and troughs.

For Bitcoin to enter a fully bullish phase and reach new heights, it must surpass the current upper trendline. This line, which follows the successive lower highs since June 6, is approximately at the $61,000 mark.

$BTC seems to have bottomed out, but it’s not out of the woods yet..!!
As a Bitcoin investor, I’m keeping a close eye on the current resistance level at around $61,000. Clearing this hurdle is crucial for us bulls to regain our upward momentum and continue our rally in the market. Let’s hope we see some strong buying pressure soon! #Crypto #Bitcoin #BTC
— Captain Faibik (@CryptoFaibik) July 6, 2024

Captain Faibik isn’t alone in identifying the significance of the $61,000 mark for Bitcoin. In fact, several other analysts share this view. Reaching this price point through daily or weekly closures would strengthen the argument that Bitcoin’s correction has come to an end. This perspective was also expressed by Ali Martinez in his analysis.

Bitcoin Strikes A Chord At The Bottom, But Can It Clear This Major Resistance?

Based on my analysis using IntoTheBlock’s In/Out Of The Money metric, I’ve found that there aren’t enough demand levels for Bitcoin to prevent a potential drop down to $47,000. This metric measures the number of addresses with profits and losses, and according to my interpretation, Bitcoin may not have sufficient buying pressure in this price range.

From an analyst’s perspective, if Bitcoin fails to surpass $61,000 on the charts, the bullish trend may not resume. This level is significant due to the substantial trading activity and presence of roughly 1.7 million Bitcoin addresses that collectively hold around 600,000 BTC. These investors are eagerly anticipating a price increase to realize their profits at this mark.

Currently, Bitcoin is experiencing a noticeable absence of strong backing. The primary resistance barrier lies at approximately $47,000. In order to reinitiate the bull market, Bitcoin needs to finish and sustain above the $61,000 mark.

— Ali (@ali_charts) July 5, 2024

What’s At Stake For Bitcoin?

Reaching and surpassing the $61,000 mark is essential for Bitcoin to demonstrate its strength and resume an upward trajectory. If it falls short, this could strengthen the pessimistic perspective and potentially lead to another round of selling. According to crypto analyst Rekt Capital, a daily closing price above $58,450 is necessary to set off a chain reaction towards $60,600.

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2024-07-08 12:56