Bitcoin
Bitcoin – Assessing why BTC must stay above $60,600
A key level could be instrumental for BTC’s price action.
- BTC’s recent volatility resulted in total liquidations worth $107 million
- Analyst sees $60,600 as the critical level that will determine BTC’s trajectory
Since the start of October, Bitcoin has seen heightened price fluctuations. Over this period, BTC has hit a high of $66,500 and a low of $58,800, with the latter being a price level that was hit less than 24 hours ago.
This drop below $60k had a massive impact on BTC holders, with many getting forcefully liquidated. In fact, over $107 million have been liquidated.
Source: X
This rise in volatility, accompanied by current market market conditions, raises questions about BTC’s future trajectory. This is why popular crypto analysts such as Rekt Capital
have suggested that BTC must remain above $60,600 for a potential upside.What does market sentiment say?
In his analysis, RektCapital posited that Bitcoin is retesting the weekly re-accumulation- range of $60,600 as support for the second consecutive week.
Source: X
According to this analysis, BTC will record an uptrend if it closes above this level on the weekly charts. Therefore, for any potential upside in the near future, BTC must preserve this range which will position the price for further hikes.
However, the analyst also noted that if the crypto loses support here, it will note another downside deviation period.
What do the charts say?
At the time of writing, BTC was trading at $60,573. This marked a 0.58% decline on the daily charts with an extension to this bearish trend by a 1.01% dip on the weekly charts.
Therefore, based on the latest price action, the aforementioned analysis by RektCapital may be concerning as it projects potential downside.
Hence, it’s essential to determine what other market fundamentals suggest.
For starters, Bitcoin’s Large holders inflow spiked over the past few days from 560.95 to 8.59k. A spike in large holders means that investors are buying the dip and taking long positions.
Such market behavior is also a sign that large holders anticipate prices to rise in the near future.
Source: Cryptoquant
Additionally, Bitcoin’s fund flow ratio spiked from a low of 0.032 to 0.077, indicating higher buying pressure as investors are depositing funds to buy BTC.
Such behavior is usually associated with bullish market sentiment.
Source: Cryptoquant
Finally, Bitcoin’s Exchange reserve also registered a sustained decline over the past month. This alludes to a long-term holding strategy as investors are less likely to sell their BTC in the short term. Mostly, this is bullish signal as it reduces supply on exchanges, decreasing the potential selling pressure.
Simply put, the recent downtrend has been losing momentum and, BTC may be well-positioned for further gains. If the positive market sentiment holds, BTC will reclaim the $61,875 resistance level. A failure to maintain this level will see Bitcoin drop to $58,272.
