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 Drop below $49,000 Earlier this month, Bitcoin was hovering around the $60,000 level, unable to consolidate above this key psychological and technical threshold.
This price level has emerged as a battleground between bulls and bears, and the outcome is expected to have major implications for Bitcoin’s trajectory in the near term.
Bitcoin Faces Crucial Test at $60K
According to According to market analyst Mark Collin, 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, if Bitcoin fails to decisively push through the $59,500 level, Collin warns that the technical outlook could become more bearish, with a possible sweep of the August 7 low.
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What further complicates the continuation of the price recovery we saw last week after the market crash on August 5th is the presence of a large amount of 1000 BTC Sell order It is currently protecting the $60,500 level, as noted by cryptocurrency analyst InspoCrypto.
According to the analyst, failure to retest this resistance area could trigger a bearish double top pattern, which could be a worrying development for bulls in the near-term price action. InspoCrypto said:
The $60,500 level is currently protected by a 1,000 BTC sell order. A failure of Bitcoin to retest $60,500 could complicate the situation. Technical analysts may identify a double top formation in such a scenario.
Moreover, the latest updates on Options The data doesn’t paint a completely optimistic picture for Bitcoin in the short term, according to InspoCrypto, which stressed the need to monitor the situation closely.
Worst case scenario for bitcoin
According to cryptocurrency analyst Daan Crypto Trades, the fact that Bitcoin is currently trading above the $59,000 level is a positive sign, as it represents a return to the asset’s 200-day exponential moving average (EMA).
However, Daan Crypto Trades male The analyst said the real test for bulls will come at the $63,000 level, which is the cryptocurrency’s local high. “It’s an important level that bulls need to break to start the party,” the analyst said. If Bitcoin fails to decisively break this resistance, bears could regain control, with the $56,500 level acting as a potential support area.
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Technical analyst EmperorBTC expressed a similar opinion, Spotlight The importance of Bitcoin’s ability to reclaim its “total range” and resistance at the $62,200 level.
The analyst advised against opening new long positions at current levels, and instead suggested Merchants “We should look for a bid on pullbacks near the weekly volume-weighted average price (VWAP) at $58,800.”
In a somewhat more cautious tone, EmperorBTC also acknowledged the possibility of a worst-case scenario, where Bitcoin could potentially return to the $52,000 level. However, the analyst stressed that this would be a “buy-and-hold gift” in the run-up to September, hinting at the possibility of a more favourable market environment in the coming months.
Featured image by DALL-E, chart by TradingView.com