Saturday, July 20, 2024
Home > News > Cryptocurrency Market > Bitcoin Strikes A Chord At The Bottom

Bitcoin Strikes A Chord At The Bottom

The price of Bitcoin has increased by 6% since it crossed into the $53,000 price territory on July 5. However, while the cryptocurrency is now exhibiting short-term bullishness, it is important to note that it is not out of the woods yet.

Related Reading

There are still some serious resistance levels that could keep BTC trapped in a range below $60,000 for the rest of the month. According to a recent analysis by Captain Faibik, the leading digital asset needs to close above the $61,000 mark before everybody can be convinced of bullish momentum.

Bitcoin Needs To Clear Major Resistance

The $61,000 price level isn’t just an arbitrary price point. According to a recent analysis shared by crypto analyst Captain Faibik, the $61,000 price is more of a resistance level that resonates with Bitcoin’s price action over the past two months.

In a 4-hour Bitcoin/TetherUS timeframe chart shared on social media platform X, the analyst drew two diverging trendlines from Bitcoin’s brief break above $70,000 on June 6. Since then, Bitcoin’s price decline has led to the creation of lower highs and lower lows. 

In order for Bitcoin to cross into total bullish momentum, it would need to cross over the upper trendline, which has been tracking the lower highs since June 6. Notably, this price level is around $61,000. 

Captain Faibik isn’t the only analyst eyeing this crucial level either. Many agree that a daily or weekly close above $61,000 would cement the end of Bitcoin’s price correction. This crucial price level was echoed in an analysis by Ali Martinez, another popular crypto analyst. 

Bitcoin is now trading at $57,569. Chart: TradingView

Martinez’s analysis is based on IntoTheBlock’s In/Out Of The Money metric, which tracks the number of addresses that are profitable and those that are in losses. As per Martinez’s take on this metric, Bitcoin doesn’t have enough demand levels to prop it up in case of a fall up to $47,000.

Conversely, Bitcoin must close above $61,000 for the bullish momentum to return. The $61,000 level is a heavily contested zone with tons of trading activity. There are approximately 1.7 million BTC addresses collectively holding over 600,000 BTC waiting to turn a profit at this price point.

Related Reading

What’s At Stake For Bitcoin?

Breaking past $61,000 is crucial for Bitcoin to prove its resilience and re-establish an uptrend. Failing to do so could reinforce the bearish narrative and trigger another sell-off. Crypto analyst Rekt Capital also noted that Bitcoin needs a daily close above $58,450 in order to fuel an upside to $60,600.

Featured image from Getty Images, chart from TradingView