An analyst believes that Bitcoin’s ability to surpass the $69,000 mark this week is crucial in demonstrating the strength of the overall crypto market. Recent bearish performance in the U.S. equity market and the strengthening of the U.S. dollar have negatively impacted the price of crypto assets, including Bitcoin, which has experienced a 1.28% decline in the past day. This decline has led to a broader decrease in the crypto market, with the total valuation dropping by 1.28% to $2.31 trillion.
Bitcoin’s current position near the $66,000 level is seen as a determining factor for its future movement. Market watchers are closely observing Bitcoin’s behavior and some have focused on its short-term exponential moving averages (EMAs).
Skew, a well-known Bitcoin analyst, suggests that Bitcoin needs to surpass the $69,000 price level by the end of this week in order to maintain its bullish trend. This potential increase would confirm the strength of the ongoing bullish trend in the market. The $66,500 price level is seen as a key defense line for Bitcoin, and a drop below this mark could trigger a second support level at $65,000. If these support levels fail to hold, Bitcoin’s price could decline to $61,065, which is considered a critical control point.
Despite various macroeconomic factors impacting Bitcoin’s price, such as inflation, declining U.S. equities, a strengthening U.S. dollar, political uncertainty, and concerns about U.S. financial policies, Bitcoin has shown resilience against the USD, gaining 5% month-to-date (MTD). This is notable considering the USD’s 3.4% increase in the same period, which typically weakens crypto prices.
Moving forward, market watchers will closely monitor Bitcoin’s price as it hovers around crucial levels. Bitcoin bulls hope that it will remain above the $66,500 support level to increase the chances of breaking the $70,000 resistance this week. On the other hand, bears aim for further declines that could push Bitcoin to support levels of $65,000 or $61,065. Currently priced at $67,053, Bitcoin is down 9.44% from its all-time high of $73,750, which was reached on March 14, 2024.
It’s important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not necessarily reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.