Bitcoin is up 6% since July 5, when it topped $53,000. But while the cryptocurrency is currently showing a short-term bull marketit is critical to note that this is not outside the forest Already.
There are still some solemn resistance levels that could keep BTC trapped below $60,000 until the end of the month. According to a recent analysis by Captain Faibik, the leading digital asset needs to close above $61,000 before everyone can be convinced of the bullish momentum.
Bitcoin must break through major resistance
The $61,000 price level is not 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.
On a 4-hour Bitcoin/TetherUS chart shared on social media platform X, the analyst drew two diverging trendlines from Bitcoin’s brief breakout above $70,000 on June 6. Since then, Bitcoin’s decline has produced lower highs and lower lows.
For Bitcoin to gain full upside momentum, it would need to break above the upper trendline that has been tracking lower highs since June 6. It is worth noting that this price level is around $61,000.
$BTC It looks like we’ve hit rock bottom, but it’s not protected yet..!!
Bitcoin bulls need to break through the $61k resistance zone to regain bullish momentum.#Crypto #Bitcoin #BTC photo:twitter.com/rzROKaA0Xo
— Captain Faibik (@CryptoFaibik) July 6, 2024
Captain Faibik is not the only analyst who has his eye on this key level. Many agree that a daily or weekly close above $61,000 would seal the end of Bitcoin’s price correction. This key price level was reflected in the analysis of Ali Martinez, another popular cryptocurrency analyst.
Martinez’s analysis is based on IntoTheBlock’s In/Out Of The Money metric, which tracks the number of addresses that are making money and those that are losing money. According to Martinez, Bitcoin does not have enough demand to sustain it if it falls to $47,000.
On the other hand, Bitcoin needs to close above $61,000 for bullish momentum to resume. The $61,000 level is a highly contested zone with a lot of trading activity. There are about 1.7 million BTC addresses collectively holding over 600,000 BTC waiting to profit at this price.
#Bitcoin currently lacking significant support. The main key demand wall is around $47,000, and to resume the bull run, $BTC must close and hold above $61,000. photo:twitter.com/9cD2otd4ZK
— Ali (@ali_charts) July 5, 2024
What is the stake for Bitcoin?
A break above $61,000 is crucial for Bitcoin to prove its resilience and reestablish an uptrend. A failure could reinforce the bearish narrative and trigger another sell-off. Rekt Capital Crypto Analyst also noticed that Bitcoin needs a daily close above $58,450 to rally to $60,600.
Featured image from Getty Images, chart from TradingView