U.Today – The market recently indicated that a reversal is imminent, prompting speculation that the one-year cycle could end soon. In the past, Bitcoin generally followed a predictable pattern; However, the way the market is acting right now points to a possible breakout of this pattern.
Bitcoin price has been testing significant resistance in recent days, and the accompanying chart indicates that this level is almost at the top of the cryptocurrency's long-term descending channel at $66,000. This level has frequently served as a ceiling for Bitcoin, as it has never been able to decisively surpass it. But recent signs suggest the market may be changing.
For example, Bitcoin spot premiums are falling, something that has not happened since June. The digital asset may be about to witness a major development, as indicated by this and the continued increase in the global M2 money supply, which is directly related to Bitcoin liquidity.
The amount of $66,000 is the immediate resistance and one of the key price levels to watch. A bullish breakout may be indicated if Bitcoin manages to break above this level with significant volume. Traders are monitoring $62,000 as critical support level in case of a decline. Subsequent collapses may indicate a more significant adjustment. Last but not least, there is still psychological resistance at $60,000, and a drop below it may lead to additional losses as traders reevaluate their holdings.
The narrative surrounding Bitcoin's rally is further reinforced by the global liquidity index hitting new highs. This implies that market liquidity is sufficient to sustain additional price increases which, if the trend continues, could push Bitcoin to new all-time highs. But volatility is to be expected, so the next few weeks will be crucial for Bitcoin price movement.
Although there is a possibility of breaking the one-year cycle, a lot will depend on how Bitcoin handles these crucial prices.
This article was originally published on U.Today.
