Bitcoin [BTC] has been steadily climbing, edging closer to a critical resistance level that may determine its trajectory towards a bull market. The latest analysis emphasizes the necessity for the digital asset to surpass this level to validate a bullish trend.
Approaching a Critical Barrier
Following a period of upward movement, BTC experienced a modest pullback. Over the past week, the price of BTC surged by more than 5%. However, in the last 24 hours, the value of the flagship cryptocurrency witnessed a slight decline.
As of the latest update, Bitcoin was trading at $63,037.03 with a market cap exceeding $1.25 trillion.
Meanwhile, a notable crypto analyst named Axel shared insights through a tweet, highlighting the significance of Bitcoin breaking above its 200-day simple moving average (SMA) resistance to cement a bullish market sentiment.
The cryptocurrency is currently testing this crucial resistance level, signaling a pivotal moment in its journey towards potentially entering a bull market.
Future Outlook for BTC
An examination of CryptoQuant’s data unveiled an uptick in selling pressure on Bitcoin. Key metrics such as the exchange reserve and net deposits indicated a heightened selling activity compared to the recent average.
Furthermore, Bitcoin’s aSORP signaled prevalent profit-taking behavior among investors. In the context of a bullish market, this trend could signify a nearing market peak.
Scrutinizing BTC’s daily chart, indications pointed towards a probable price correction as the digital asset neared the $64k resistance. Notably, the MACD exhibited a positive outlook for the market.
Additionally, the Chaikin Money Flow (CMF) bolstered the bullish stance with an upward movement hinting at a potential breakout above the resistance level.
Moreover, insights from Hyblock Capital highlighted a clear pathway for Bitcoin to advance towards $64k, anticipating a surge in liquidations at that level. Typically, an increase in liquidation activities leads to short-term price adjustments.
However, in the event of a bearish scenario taking over, a retracement to $57k wouldn’t be unforeseen.