The important $60,000 barrier has been crossed by Bitcoin (BTC) once more, but the market is still cautious with significant resistance to this rally in the near future. BTC was trading just above the 200 EMA at $59,548 after a brief spike above $60,000 that was followed by a wave of selling pressure that swiftly drove the price back down. Although reaching $60,000 is a significant psychological boost, it is important to keep an eye on critical levels that may determine Bitcoin's short-term course.
The $60,000 mark has considerable 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 crucial battleground.
Bitcoin tends to draw both buying and selling activity whenever it crosses over $60,000, which increases volatility. Thus, it is imperative to keep an eye on $60,000 as well. Bitcoin might gain enough traction to test higher resistance levels if it can continue trading above this mark.
The next immediate resistance level is located just above $60,000. Further significance is added when one notices that this level aligns with the daily chart's 50 EMA. In the past, when BTC reached this level, it has frequently experienced severe pullbacks as a result of its inability to sustain rising momentum. Failure to do so might lead to a retest of lower support levels. However, breaking and holding above $61,000 could open the door for a longer-term rally.
Support for 200 EMA is at $59,548. At $59,548, the 200 exponential moving average Bitcoin is currently trading at. This moving average will be critical in figuring out Bitcoin's next move as it has historically served as a solid support level. If this level is held, it may serve as a springboard for a possible recovery; if it is broken, additional downside may be indicated with a potential return to the $58,000-$57,000 region.
