U.Today – The important $60,000 barrier has been breached by (BTC) once again, but the market remains cautious and anticipates significant resistance to this rally in the near future. BTC was trading just above the 200-day EMA at $59,548 after a brief spike above $60,000 that was followed by a wave of selling pressure that quickly sent the price back down. While hitting $60,000 is a significant psychological boost, it is important to keep an eye on critical levels that can determine Bitcoin’s short-term course.
The $60,000 mark has considerable psychological significance in the market, it is not just a round number. Historically, bulls and bears have fought fiercely over this level, making it a crucial battleground.
Bitcoin tends to attract both buying and selling activity when it breaks above $60,000, which increases volatility. Therefore, it is imperative to keep an eye on $60,000 as well. Bitcoin could gain enough traction to test higher resistance levels if it can continue trading above this mark.
The next immediate resistance level lies just above $60,000. More significance is added when one notes that this level aligns with the 50 EMA on the daily chart. In the past, when BTC reached this level, it frequently experienced severe pullbacks as a result of its inability to maintain upward momentum. Failure to do so could lead to a retest of lower support levels. However, breaking and sustaining above $61,000 could open the door for a long-term rally.
Support for the 200 EMA is at $59,548. At $59,548, the 200-day exponential moving average is where Bitcoin is currently trading. This moving average will be critical in determining Bitcoin’s next move as it has historically served as a strong support level. If this level holds, it can serve as a springboard for a potential rally; if broken, it can signal a further decline with a possible return to the $58,000-$57,000 region.
This article was originally published on U.Today
