U.Today – The critical $60,000 barrier was once again breached by (BTC), but the market remains cautious, placing significant resistance to this rally in the near future. BTC traded just above the 200 EMA at $59,548 after a brief rally above $60,000, which was followed by a wave of selling pressure that quickly brought the price down. While reaching $60,000 is a significant psychological trigger, it is critical to keep an eye on critical levels that could determine Bitcoin’s short-term price.
The $60,000 level has a lot of psychological significance in the market, it is not just a round number. Bulls and bears have historically fought fiercely for this level, making it a key battleground.
Bitcoin tends to attract both buying and selling activity when it crosses $60,000, which increases volatility. Therefore, it is indispensable to watch $60,000 as well. Bitcoin could gain enough momentum to test higher resistance levels if it can continue trading above this level.
The next immediate resistance level is just above $60,000. Further significance is added when we note that this level coincides with the 50 EMA of the daily chart. In the past, when BTC reached this level, it often experienced major pullbacks as a result of its inability to sustain rising momentum. Failure to do so could lead to a retest of the lower support levels. However, a breakout and hold above $61,000 could open the door to a longer-term rally.
Support for the 200 EMA is at $59,548. At $59,548, Bitcoin’s 200 exponential moving average is currently trading at price. This moving average will be key in determining Bitcoin’s next move, as it has historically served as a solid support level. If this level holds, it could serve as a springboard for a possible recovery; if broken, additional downside could be in order with a potential return to the $58,000-$57,000 region.
