Analysis of Bitcoin’s Price Movement: Will BTC Maintain Support at $60K or Retrace to $57K?
Bitcoin, once again, successfully breached the significant resistance level of $61,000 in the recent hours. Despite this positive move, there are concerns as the leading cryptocurrency is hovering near a critical support level.
Recent data analysis indicates that a breakdown below this support could potentially drive BTC’s price down to $57,000 in the days ahead.
Bitcoin Surpasses $61K Threshold Again!
Even with a slight price dip observed over the last 24 hours, Bitcoin managed to surpass the $61,000 mark. Presently, the cryptocurrency is trading at $61,173.50, boasting a market capitalization exceeding $1.2 trillion.
According to insights derived from IntoTheBlock’s data, more than 44 million Bitcoin addresses are currently in profit, constituting over 82% of the total BTC addresses.
Meanwhile, a renowned crypto analyst named Ali recently highlighted a critical support level for Bitcoin in a tweet. The analysis pointed towards a robust support level roughly at $60,365, emphasizing the significance of the cryptocurrency maintaining its value above this threshold.
The tweet also suggested that breaching this support level could potentially trigger a retreat in Bitcoin’s price back towards $57,000.
Possible Correction on the Horizon?
Considering the significance of the support level mentioned earlier, CryptoCrypto delved into Bitcoin’s on-chain data to assess the likelihood of BTC revisiting this level.
Analysis of CryptoQuant’s data revealed an increase in BTC’s exchange reserve, indicating a surge in selling pressure, which typically leads to price corrections. However, other metrics portrayed a rather optimistic picture.
For instance, BTC’s aSORP hinted at an increase in selling among investors at a loss, a potential sign of a market bottom during a bearish phase. Additionally, the coin’s secondary CDD revealed that the movement of long-term holders over the past week was below the average, suggesting their intention to retain their holdings.
Besides, indicators from the derivatives market also appeared favorable. BTC’s funding rate was on the rise, and the taker buy/sell ratio for Bitcoin futures showed a bullish trend.
All these signs collectively indicated a prevailing buying sentiment among futures investors, which is typically interpreted as a positive signal.
Furthermore, Bitcoin’s price was approaching the lower boundary of the Bollinger Bands, a potential precursor to an upcoming price surge. If history repeats itself, Bitcoin could be poised to test the resistance level around $65,000 in the near future.