- Bitcoin has fallen marginally over the past 24 hours.
- The market indicators seemed optimistic for the king coin.
Bitcoin [BTC] has once again managed to cross the psychological resistance of $61,000 in the past few hours. But concerns loomed as the king was still close to crucial support.
The latest analysis showed that a drop below that support could send BTC down to $57,000 in the coming days.
Bitcoin passes $61k again!
Despite a marginal price drop in the past 24 hours, BTC crossed the $61,000 mark. At the time of writing, the king coin was trading at $61,173.50 with a market cap of over $1.2 trillion.
According to our analysis of IntoTheBlock’s factsMore than 44 million BTC addresses were profitable, accounting for more than 82% of the total number of BTC addresses.
In the meantime, Ali, a popular crypto analyst, posted tweet showing crucial support for BTC. According to the tweet, the king coin had strong support at almost $60,365. It was crucial that the currency maintain its value above that level.
The tweet also mentioned that a drop below that support could pump the coin back to $57,000.
Is a correction likely?
As the aforementioned analysis revealed crucial support, AMBCrypto checked Bitcoin’s on-chain data to better understand the likelihood of it falling back to that level.
According to our analysis of CryptoQuant’s factsBTC’s foreign exchange reserve increases. Whenever the benchmark rises, it means selling pressure increases, which often causes price corrections. However, the rest of the stats looked quite optimistic.
For example, BTC’s aSORP suggested that more investors were selling at a loss. In the middle of a bear market, this could indicate a market bottom. The coin’s secondary CDD revealed that the movement of long-term holders over the past seven days was lower than the average.
They have a motive to hold on to their coins.
Source: CryptoQuant
In addition, things also looked good on the derivatives market. BTC’s funding rate increased. Moreover, Bitcoin’s buy/sell ratio was green.
This clearly indicated that buying sentiment was dominant among futures investors, which can be considered a positive signal.
Read Bitcoins [BTC] Price prediction 2024–2025
The better news was that the price of BTC was about to reach the lower limit of the Bollinger Bands. When such an incident occurs, it indicates an imminent price increase.
If that happens again, BTC could move towards the $65,000 resistance in the coming days.
Source: TradingView