Battleground At $60,000: Bitcoin Faces Pivotal Test As Bulls Aim To Reclaim Key Support
August 21 2024 - 3:00AM
NEWSBTC
The world’s largest cryptocurrency, Bitcoin (BTC), has struggled to
maintain a foothold above the critical $60,000 price level in
recent trading sessions, as the digital asset finds itself caught
in a tug-of-war between bullish and bearish forces. After
recovering from a dip below $49,000 earlier this month, Bitcoin has
been vacillating around the $60,000 mark, unable to consolidate
above this key psychological and technical threshold. This
price level has emerged as a battlefield between the bulls and
bears, with the outcome poised to have significant implications for
Bitcoin’s near-term trajectory. Bitcoin Faces Decisive Test At
$60,000 According to market analyst Mark Cullen, Bitcoin’s ability
to reclaim and hold above $60,000 by the end of the day could pave
the way for a move higher towards the mid-to-high $60,000
range. However, should Bitcoin fail to decisively push
through the $59,500 level, Cullen warns that the technical outlook
could turn more bearish, with the potential for a sweep of the
August 7th low. Related Reading: Dogecoin Faces Supply Squeeze:
What This Means For Price Further complicating the continuation of
the price recovery witnessed the past week after the August 5
market crash, is the presence of a sizable 1,000 BTC sell order
currently protecting the $60,500 level, as noted by crypto analyst
InspoCrypto. According to the analyst, a failed retest of
this resistance zone could potentially catalyze the formation of a
bearish double top pattern, which would be a concerning development
for the bulls in the near term price action. InspoCrypto said: The
$60,500 level is currently protected by a 1,000 BTC sell order. A
failed retest of Bitcoin at $60,500 could potentially complicate
the situation. Technical analysts might identify a double top
formation in such a scenario. Moreover, the latest updates on the
options data do not paint an entirely optimistic picture for
Bitcoin in the short term, according to InspoCrypto, who emphasized
the need to closely monitor the situation. Worst-Case Scenario For
BTC According to crypto analyst Daan Crypto Trades, the fact that
Bitcoin is currently trading above the $59,000 mark is a positive
sign, as it represents a return to the asset’s Daily
200-Exponential Moving Average (EMA). However, Daan Crypto
Trades noted that the real test for the bulls will come at the
$63,000 level, which corresponds with the cryptocurrency’s local
highs. “It’s an important level to break for the bulls to get the
party started,” the analyst stated. Should Bitcoin fail to
decisively surpass this resistance, the bears could regain control,
with the $56,500 level serving as a potential support zone. Related
Reading: XRP Spikes 6%: Can It Overcome $0.66 For Further Upside?
Fellow technical analyst EmperorBTC echoed a similar sentiment,
highlighting the significance of Bitcoin’s ability to reclaim its
“macro range” and the resistance at the $62,200 level. The
analyst advised against opening fresh long positions at current
levels, instead suggesting that traders should look to “bid on
pullbacks near the weekly VWAP (Volume-Weighted Average Price) at
$58,800.” In a somewhat more cautious tone, EmperorBTC also
acknowledged the possibility of a worst-case scenario, wherein
Bitcoin could potentially retrace to the $52,000
level. However, the analyst emphasized that this would be a
“gift to buy and hold” in the lead-up to September, hinting at the
possibility of a more favorable market environment in the coming
months. Featured image from DALL-E, chart from TradingView.com
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