Bitcoin’s price has risen 6% since it reached the $53,000 price area on July 5. Although the cryptocurrency now that show short-term bullishnessit is important to note that this is the case not from the woods yet.
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There are still some serious resistance levels that could keep BTC in the sub-$60,000 range for the rest 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 bullish momentum.
Bitcoin must overcome major resistance
The $61,000 price point isn’t 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.
In a 4-hour Bitcoin/TetherUS timeframe shared on social media platform Since then, Bitcoin’s price decline has led to the creation of lower highs and lower lows. .
For Bitcoin to achieve total bullish momentum, it would need to cross the upper trendline, which has been tracking the lower highs since June 6. This price point is specifically around $61,000.
$BTC seems to have hit rock bottom, but it’s not out of the woods yet..!!
Bitcoin bulls need to clear the $61k resistance area to regain bullish momentum.#Crypto #Bitcoin #BTC pic.twitter.com/rzROKaA0Xo
— Captain Faibik (@CryptoFaibik) July 6, 2024
Captain Faibik isn’t the only analyst keeping an eye on this crucial level either. Many agree that a daily or weekly close above $61,000 would cement the end of Bitcoin’s price correction. This crucial price level was reflected in an analysis by Ali Martinez, another popular crypto analyst.
Martinez’s analysis is based on IntoTheBlock’s In/Out Of The Money metric, which tracks the number of addresses that are profitable and the number of addresses that are in losses. According to Martinez’s view of this metric, Bitcoin does not have enough demand levels to support demand in the event of a decline to $47,000.
Conversely, Bitcoin must close above $61,000 for bullish momentum to return. The $61,000 level is a heavily contested area with heavy trading activity. There are approximately 1.7 million BTC addresses that collectively hold over 600,000 BTC and are waiting to make a profit at this price.
#Bitcoin no significant support at the moment. The main demand wall is around $47,000, and if the bull run resumes, $BTC should close and hold above $61,000. pic.twitter.com/9cD2otd4ZK
— Ali (@ali_charts) July 5, 2024
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What’s at stake for Bitcoin?
Breaking the $61,000 mark is crucial for Bitcoin to prove its resilience and regain an uptrend. Failure to do so could reinforce the bearish narrative and trigger another sell-off. Crypto analyst Rekt Capital also noted that Bitcoin needs a daily close above $58,450 to stage a surge to $60,600.
Featured image from Getty Images, chart from TradingView