Bitcoin hits bottom

The price of bitcoin has risen by 6% since it crossed the $53,000 price territory on July 5. However, while the cryptocurrency is now showing short-term optimismIt is important to note that it is Not out of danger still.

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There are still a few important resistance levels that could keep btc trapped in a range below $60,000 for the rest of the month. According to a recent analysis by Captain Faibik, the leading digital asset needs to close above the $61,000 mark before everyone can be convinced that there is bullish momentum.

bitcoin needs to overcome a major resistance

The $61,000 price level is not just an arbitrary price. According to a recent analysis shared by cryptocurrency analyst Captain Faibik, the $61,000 price is rather a resistance level that resonates with bitcoin’s price action over the past two months.

In a 4-hour chart of bitcoin/TetherUS shared on social media platform x, the analyst drew two diverging trendlines beginning with bitcoin’s brief break above $70,000 on June 6. Since then, bitcoin’s price decline has led to the creation of lower highs and lower lows.

For bitcoin to gain full bullish momentum, it would need to cross the upper trendline, which has been following the lower highs since June 6. Notably, this price level is around $61,000.

<blockquote class="twitter-tweet”>

twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc It seems we've hit rock bottom, but we're not out of the woods yet!

bitcoin bulls need to break above the $61k resistance area to regain bullish momentum.twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Cryptocurrencies twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc image.twitter.com/rzROKaA0Xo

— Captain Faibik (@CryptoFaibik) twitter.com/CryptoFaibik/status/1809464781432320363?ref_src=twsrc%5Etfw” rel=”nofollow”>July 6, 2024

Captain Faibik is not the only analyst keeping an eye on this crucial level. Many agree that a daily or weekly close above $61,000 would cement the end of the bitcoin price correction. This crucial price level was echoed in an analysis by Ali Martinez, another popular cryptocurrency analyst.

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Martinez’s analysis is based on IntoTheBlock’s In/Out Of The Money metric, which tracks the number of addresses that are profitable and those that are losing. Based on Martinez’s opinion on this metric, bitcoin does not have sufficient levels of demand to sustain it in the event of a drop to $47,000.

Conversely, bitcoin needs to close above $61,000 for bullish momentum to return. The $61,000 level is a hotly contested zone with tons of trading activity. There are roughly 1.7 million btc addresses collectively holding over 600,000 btc waiting to profit at this price level.

<blockquote class="twitter-tweet”>

twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin It currently lacks significant support. The main key demand wall is around $47,000, and for the bullish move to resume, twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc Must close and hold above $61,000. photo.twitter.com/9cD2otd4ZK

— Ali (@ali_charts) twitter.com/ali_charts/status/1809164726770761816?ref_src=twsrc%5Etfw” rel=”nofollow”>July 5, 2024

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What's at stake for bitcoin?

Breaking above $61,000 is crucial for bitcoin to prove its resilience and reestablish an uptrend. Failure to do so could reinforce the bearish narrative and trigger another sell-off. Cryptocurrency analyst Rekt Capital x.com/rektcapital/status/1809733291546959886″ rel=”nofollow”>It was also noted that bitcoin needs a daily close above $58,450 to fuel a rally to $60,600.

Featured image from Getty Images, chart from TradingView