Originally published on: May 19, 2024
Bitcoin has been hovering around $67,618, showing resilience as liquidity around its spot price increased leading up to the weekly close. With gains exceeding 10% for the month so far, bulls seem to have the upper hand in the current market conditions.
An analysis by well-known trader Daan Crypto Trades pointed out that the $72,000 mark is the major resistance zone to watch out for. Despite breaking through key levels around $67.4K, there are still significant obstacles at around $68K. The real liquidity lies beyond $72K, according to Daan Crypto Trades, reflecting the current sentiment in the market.
Further examination revealed that liquidity concentrations are focused at $66,500 and $67,800, underscoring the importance of these levels in the short term. Daan Crypto Trades also highlighted Bitcoin’s 100-day moving average (MA) as a crucial long-term support level to monitor for momentum indications.
On a positive note, analyst Rekt Capital suggested that a mere 1% increase in BTC price could mark the beginning of a new phase in the ongoing bull market. According to Rekt Capital, Bitcoin’s post Bull Flag breakout retest attempt is crucial for sustaining an upward trend.
However, there are more cautious views from traders like Credible Crypto, who anticipate a retracement back to the $60,000 level or even lower. Credible Crypto warned that if Bitcoin drops to $59-60K, altcoins could experience sharper declines, emphasizing the interconnected nature of the cryptocurrency market.
As always, it’s important to conduct thorough research and exercise caution when making investment decisions as the market conditions can change rapidly. Stay informed and subscribe to the Markets Outlook newsletter for valuable insights on investing strategies and market trends.