Bitcoin Bulls Gearing Up, $63,000 Key ResistanceTwo weeks ago, Bitcoin prices plunged to $49,000, dealing a heavy blow to miners. Profits dwindled significantly, forcing many miners to exit the market, particularly smaller ones who found it difficult to keep up
Bitcoin Bulls Gearing Up, $63,000 Key Resistance
Two weeks ago, Bitcoin prices plunged to $49,000, dealing a heavy blow to miners. Profits dwindled significantly, forcing many miners to exit the market, particularly smaller ones who found it difficult to keep up. Meanwhile, the hash rate and mining difficulty continued to climb, further exacerbating the miners' plight. Technical analysis and liquidation heatmaps indicate that Bitcoin must break through the psychological barrier of $60,000 to regain its upward momentum, a task that won't be easy.
However, recent market indicators seem to be revealing some positive signs. Over the past week, the RSI indicator on the 12-hour chart has hovered around the neutral level of 50, with the $61,500 resistance level remaining unbreached. But now, the RSI indicator appears poised to break through the 50 line. Additionally, the OBV indicator has risen for two consecutive days, suggesting that market demand could propel Bitcoin prices towards $63,000.
It's important to note that the $63,000 zone faces strong resistance, requiring bulls to engage in a fierce battle with sellers. Fortunately, the liquidation heatmap shows a high concentration of liquidation orders at $63,000 and $67,000, acting as magnets for Bitcoin. Especially around $63,000, liquidity is dense and abundant, suggesting that Bitcoin might first experience a surge, clearing this zone before potentially retracing.
After an overnight period of consolidation and volatility, the market experienced a pullback in the early morning, reaching a daily high of $59,869 and a low of $58,250, a drop of nearly 1,500 points. Following its peak the previous evening, the price began to oscillate downward in the early morning hours. Long positions established the evening before also experienced minor losses and were exited. Currently, the market has not stabilized after hitting a bottom but has seen a rebound, now trading around $58,340.
Examining the current market situation, while the weekly timeframe is approaching a positive close, the candle body is weak, leaving small tails at both ends, providing little guidance on the market direction. The morning pullback further emphasized the critical resistance level at the middle line of the daily timeframe, requiring close attention. The short-term retracement confirmed the underlying resistance, while also testing the strength of the bulls. The overall trend remains optimistic for a minor correction followed by a resumption of upward momentum. The strategy for the morning and afternoon revolves around taking long positions.
Trading Suggestions:
- Buy Bitcoin at $58,000 - $58,200, targeting $59,500
- Buy Ethereum at $2,590 - $2,600, targeting $2,660
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