Bitcoin Struggles to Break $60K Mark, Posing Challenges for Investors
Bitcoin investors are facing a daunting task as they attempt to bounce back from a two-month low in BTC prices. However, the recent recovery has been slow due to strong resistance levels. Despite a 6.2% increase from this week’s low, BTC has been unable to surpass crucial trendlines.
The moving average poses a threat to the BTC price as it continues to struggle. Throughout April and May, Bitcoin experienced a 23% decline from its previous all-time high, making it less likely to recover. BitMEX Co-Founder Arthur Hayes even predicted that Bitcoin will be trading below $70,000 by August.
In order to make significant progress, Bitcoin must convincingly surpass the $60,000 mark. However, the resistance areas have proven to be stronger so far. The 100-day moving average, currently at $59,930 as of May 3, has served as a support level for the market since October 2023 and has remained steady during the first half of the 2023 Bitcoin bull market. But now, the candlesticks have dipped below the moving average, suggesting a possible downtrend.
The Trading Indicator has also confirmed that bulls are facing significant challenges at the 100-day moving average. “Reclaiming the 100-Day Moving Average would be a major breakthrough for Bitcoin bulls and could potentially trigger a short squeeze,” wrote Keith Alan in a post on X.
Another obstacle that Bitcoin must overcome in its path to recovery is the short-term holder realized price (STH-RP). This traditional support line for bull markets represents the aggregate cost basis of Bitcoin holders who are more speculative in nature. It includes wallets that hold BTC for 155 days or less. As of May 1, the STH-RP was at $59,684, creating a new trendline near the $60,000 mark.
Cubic Analyst CEO Caleb Franzen has identified the STH-RP as one of the resistance levels that Bitcoin needs to surpass. “My personal threshold for ‘risk-on’ is a daily close above $61k,” he stated. “There is still a lot of work to be done.”
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