Bitcoin has gained 6% since breaking above the $53,000 price zone on July 5. However, while the cryptocurrency is now Showing a short-term uptrendIt is important to note that Not out of the woods Until now.
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There are still some serious resistance levels that could keep Bitcoin confined to the sub-$60,000 range for the rest of the month. According to a recent analysis by Captain Vibek, the leading digital asset needs to close above $61,000 before everyone can buy into the bullish momentum.
Bitcoin needs to break major resistance
The $61,000 price level is not just an arbitrary price point. According to a recent analysis shared by cryptocurrency analyst Captain Vibek, $61,000 is a resistance level that aligns with Bitcoin’s price action over the past two months.
In the 4-hour chart of Bitcoin/TetherUS shared on social media platform X, the analyst drew two diverging trend lines from Bitcoin’s short break above $70,000 on June 6. Since then, Bitcoin’s price decline has created lower highs and lows.
For Bitcoin to fully cross the bullish momentum, it needs to cross the upper trend line, which has been tracking lower highs since June 6. It is worth noting that this price level is located around $61,000.
Bitcoin It seems that things have reached bottom, but they are not out of the woods yet..!!
Bitcoin bulls need to clear the $61k resistance zone to regain upward momentum.#cryptocurrencies #Bitcoin #Bitcoin pic.twitter.com/rzROKaA0Xo
— Captain Faibik (@CryptoFaibik) July 6, 2024
Captain Vibek is not the only analyst eyeing this crucial level. Many agree that a daily or weekly close above $61,000 would confirm the end of the Bitcoin price correction. This crucial price level was echoed by Ali Martinez, another prominent cryptocurrency analyst.
Martinez’s analysis is based on IntoTheBlock’s In/Out Of The Money metric, which tracks the number of addresses making profits and those making losses. According to Martinez’s view of this metric, Bitcoin does not have enough demand levels to support it if it drops to $47,000.
Conversely, Bitcoin must close above $61,000 for bullish momentum to return. The $61,000 level is a hotly contested area with a lot of trading activity. There are nearly 1.7 million Bitcoin addresses collectively holding over 600,000 BTC waiting to make a profit at this price point.
#Bitcoin The price currently lacks significant support. The major demand barrier is around $47,000, and to resume the rise, Bitcoin The stock must 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?
A break of $61,000 is crucial for Bitcoin to prove its resilience and re-establish an uptrend. Failure to do so could reinforce the bearish narrative and trigger another sell-off. Cryptocurrency analyst Rekt Capital It was also noted that Bitcoin needs a daily close above $58,450 to support a rally to $60,600.
Featured image by Getty Images, chart by TradingView