Bitcoin (BTC) has faced a sudden downturn, retracing to a critical breakout level of approximately $57.7k, following a period of relative stability. Despite growth in the stock market and a steady U.S. Dollar Index, Bitcoin failed to capitalize on these developments, leading to a notable decline.
According to Zen, a crypto market analyst, this retracement could signal further downside potential, with Bitcoin possibly revisiting lower price levels in the coming days.
What you'll learn 👉
Potential Targets for Bitcoin’s Next Move
Zen’s analysis highlights the likelihood of Bitcoin testing the long buy tail from last week, which remains a magnet for the price. This potential downside could see Bitcoin targeting a zone around $53.5k to $54.6k.
Additionally, a Fair Value Gap exists at $56k, while a developing Yearly Volume Area Low (VAL) sits further down at approximately $50.3k. These levels might come into play if the bearish momentum persists, potentially leading to a revisit of these price zones either this week or next.
Key Resistance Levels and Liquidity Pools
On the upside, Bitcoin faces resistance before any consideration of a bullish reversal. The main resistance zone lies near the developing Yearly Volume Weighted Average Price at $59.5k, with a critical level above $61k.
So far, attempts to breach these levels have been met with rejections, indicating that bulls have yet to regain control.
Zen also points out liquidity pools both above and below the current price, with key levels to watch at $60,208, $60,944, $61,906, and $62,472 above, and $57,662, $57,131, $56,541, and $54,373 below.
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Market Sentiment and Current Price
Bitcoin’s recent price action reflects a cautious market sentiment, with Fear & Greed Index readings fluctuating between 25 and 39, indicating lingering uncertainty.
At press time, CoinGecko reports that Bitcoin trades at $59,719.11, representing a 0.66% increase over the past day and a 1.33% gain in the last week.
Despite these minor gains, the broader trend suggests that Bitcoin could face additional challenges before establishing a clearer direction.
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