Bitcoin Stuck at $60K: What's Holding Cryptocurrency Back?
Bulls in bitcoin have “a lot of work to do” in order to regain ground lost during the two-month lows in the price of the cryptocurrency.
Bitcoin (BTC) ticks downward to $59,305 encounters significant obstacles that prevent the BTC price recovery from rising above $60,000.According to data from Cointelegraph Markets Pro and Trading View, although BTC/USD has risen up to 6.2% from this week’s lows, it has not been able to breach any significant trendlines.
BTC price "ordeal" is threatened by moving average.
Through April and early May, Bitcoin had a 23% decline from its all-time highs, and there is currently little chance that the price of BTC will rise again.
Arthur Hayes, the former CEO of BitMEX, predicted that rangebound trading below $70,000 will characterize BTC/USD until August.
But first, $60,000 needs to be recovered, and thus far, bulls are losing out to the trendlines defending it.
The 100-day moving average (MA) of Bitcoin is being watched; as of May 3, it stands at $59,930.
Since October 2023, this trendline has supported the market and given a floor for the first part of the bull market for bitcoin in 2023.
However, as of right now, full daily candles are printing beneath the price.
Bulls were “running into strong technical resistance at the 100-Day MA,” according to trading site Material Indicators, which commented on the situation.
One of Material Indicators’ exclusive trading tools was displayed flashing green on a daily period in the accompanying chart.
The preceding chart showed one of Material Indicators’ unique trading techniques flashing green on a daily basis.
“It would be a nightmare to be rejected.”
Short-term Bitcoin holders are submerged
The short-term holder realized price (STH-RP), a traditional bull market support line, is another obstacle for BTC prices to overcome before they rebound.
Related: If $56K lows hold, a bitcoin price correction is “very common,” according to Peter Brandt
This is the total cost basis of more speculative Bitcoin hodlers, or wallets that hold cryptocurrency for no more than 155 days.
Price returns to STH-RP, which have happened several times in recent weeks, can provide as strong support, as they did for the most of the bull market that began in early 2023.
STH-RP was trading at $59,684 on May 1, the most current day for which data is available on the on-chain data repository Look Into Bitcoin.
The CEO of Cubic Analysts, Caleb Franzen, listed STH-RP among the resistance levels he personally chose to overcome in his most recent X analysis.
My own “risk-on” boundary is a daily close of much than $61,000. A ton of work to be done,” he said.
