Published
6 months ago on
May 06, 2024
Bitcoin is currently struggling to surpass the $60,000 mark, facing significant resistance that is hindering its price rebound, despite recovering up to 6.2% from the week’s lows.
Analysis from Cointelegraph Markets Pro and TradingView highlights that BTC/USD has yet to breach crucial trendlines.
The cryptocurrency has seen a 23% decline from its peak, with recovery prospects appearing slim through April and May.
Former BitMEX CEO Arthur Hayes has predicted that Bitcoin will continue to trade within a range below $70,000 until August, emphasizing the importance of first reclaiming the $60,000 level.
However, this mark remains well-defended by existing trendlines.
Particularly challenging for Bitcoin is its 100-day moving average (MA), which, as of May 3, stands at $59,930.
Historically, this trendline has supported the market since October 2023 and helped sustain prices during the early 2023 bull market phase.
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Yet, recent patterns show Bitcoin closing full daily candles beneath this average, indicating a downward shift.
Material Indicators, a trading resource, observed that this average is presenting strong technical resistance.
They noted, “Reclaiming the 100-Day Moving Average would be a big deal for Bitcoin Bulls that could lead to a short squeeze,” as stated by co-founder Keith Alan on the social platform X.
Another significant obstacle is the short-term holder realized price (STH-RP), which reflects the average cost basis for Bitcoin holders who have held their positions for 155 days or less.
This metric has repeatedly acted as a robust support during recent weeks and throughout much of the bull market since early 2023.
As of May 1, STH-RP was recorded at $59,684, closely aligning with the critical $60,000 resistance zone.
Caleb Franzen, CEO of Cubic Analysts, also pointed out the significance of this resistance level in his commentary on X.
He mentioned that for a ‘risk-on’ scenario, a daily closure above $61,000 is crucial.
“Lots of work to do,” he concluded, underscoring the challenges that lie ahead for Bitcoin to regain its upward momentum.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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