This critical level will dictate whether $68,000 or $60,000 is next for BTC

Bitcoin has experienced a bullish pullback over the past month, successfully breaking through several key resistance levels.

However, the price has now approached a critical resistance zone defined by the 100- and 200-day moving averages. Behavior in this area will be critical in determining Bitcoin’s global trajectory.

Bitcoin Price Analysis: Technical

By Shayan

The daily chart

A close examination of Bitcoin’s daily chart reveals a notable increase in buying activity as the price has experienced a period of bullish retracement, retrieving multiple key resistance levels. However, after a significant 32% rise, BTC has now approached a decisive and substantial resistance zone, defined by the convergence of the 100-day and 200-day moving averages.

These MAs line up at the $63.5K threshold, creating a formidable resistance area.

Although the 100-day MA is about to cross below the 200-day MA, the recent price action suggests that there is a chance for Bitcoin to break above this critical level, possibly reversing the MA crossover.

However, the convergence of these two lines at $63.5k underscores the importance of this resistance, and the next price action will likely determine Bitcoin’s overall trajectory. In case of a rejection, sellers can target the notable $60,000 support region as the next target.

Source: TradingView The 4-hour chart

On the 4-hour chart, Bitcoin price action reflects an uptrend, characterized by higher highs and higher lows, indicating a strong buyer presence in the market.

BTC has recovered two critical resistance levels at $56,000 and $60,000. However, the price has also formed an ascending wedge pattern, which could indicate a continuation to the downside if it breaks to the downside.

Bitcoin has reached substantial resistance at $63.5K and appears to have lost some bullish momentum. This level roughly coincides with the upper boundary of the wedge, acting as an important barrier. If the price breaks this critical range, it may point to the fair value gap between $68,000 and $69,000, where selling pressure could re-emerge.

Conversely, if a rejection occurs, the next line of defense for buyers will likely be the lower boundary of the wedge, around $62,000.

Source: TradingView chain analysis

By Shayan

Analysis of Bitcoin futures market metrics provides valuable information that complements traditional price analysis. The chart focuses on Taker’s bid-ask ratio, a key indicator that measures the relative aggressiveness of buyers versus sellers in executing orders.

Recently, the ratio experienced a significant drop, indicating strong selling pressure. However, the metric has since started to recover, showing a slight increase. This suggests that buyers are making efforts to push the price of Bitcoin above the critical resistance level of $63,000. If this upward trend in the ratio continues, the current retracement phase could extend into the short term, leading to a break above the 100- and 200-day moving averages and setting the stage for a move towards the crucial $70,000 resistance region.

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