Bitcoin’s price action at the $60,000 level remains critical with analysts Sjuul from AltCryptoGems and Michaël van de Poppe underscoring its importance.
Both share their perspectives and highlight potential bullish retests and the risks of a drop below this threshold. As the market anticipates key economic events, their insights offer guidance on navigating this pivotal period for Bitcoin.
What you'll learn 👉
The Importance of $60K
According to Sjuul, the $60,000 level holds key importance on the weekly chart. Over the last four years, this level has marked a substantial price range. Remaining above $60,000 indicates a bullish retest, transforming previous resistance into new support. However, dropping below $60,000 suggests a return to the broader range, rendering the upward movement lately a deviation.
Zooming in on the 4-hour chart, Sjuul highlights a 75-day consolidation zone, with $60,000 as the support. During this period, Bitcoin has moved sideways, frequently testing the range’s extremes without a clear resolution. Sjuul emphasizes that range-bound formations remain neutral until broken, making it crucial to observe how Bitcoin navigates this level.
Technical Indicators and Market Sentiment
Sjuul maintains a bullish bias, favoring long positions as long as the $60,000 support holds. He advises against shorting at support, as it’s typically a poor strategic move. Instead, traders should consider opening short positions at resistance levels.
For those hesitant to go long, Sjuul recommends monitoring the 4-hour EMA200. This trend indicator often signals strength in Bitcoin; once reclaimed, a rally typically follows. Currently, Bitcoin sits just below this indicator, suggesting that traders should wait for a clear signal before taking positions.
Liquidity analysis on the liquidation heatmap reveals that most liquidity resides above the current price, with notable liquidity around $50,000 already taken.
Consequently, this suggests a potential upward movement. Sjuul also notes a flat funding rate, indicating a balanced market between spot and perpetual positions. This balance contributes to a healthier market environment.
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Show more +Potential Market Movements
Michaël van de Poppe echoes the importance of the $60,000 support level. He advocates for holding this level, noting that losing it could prompt a test between $52,000 and $55,000. Van de Poppe advises continued accumulation and patience, particularly in light of upcoming economic events.
Moreover, this week features key economic indicators, including the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Wednesday. These events could introduce volatility into the market.
Bitcoin’s $60,000 level remains a critical battleground for bulls and bears. As Sjuul from AltCryptoGems and Michaël van de Poppe outline, holding above this level suggests a bullish retest, transforming resistance into support. However, dropping below it could signify a return to a broader range, with potential tests at lower levels.
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