Key Points
- Bitcoin [BTC] has managed to cross the $61k mark again despite a slight drop in the last 24 hours.
- However, a drop under crucial support could push BTC down to $57k in the near future.
Bitcoin [BTC] has managed to cross the psychological resistance of $61k in the past few hours, despite a slight drop in the previous 24 hours. However, there are concerns as the coin is still close to a crucial support level.
A recent analysis has suggested that if Bitcoin were to fall under this support, it could potentially drop to $57k in the coming days. At the time of writing, BTC was trading at $61,173.50 with a market capitalization of over $1.2 trillion.
Bitcoin’s Current Market Position
According to analysis of IntoTheBlock’s data, over 44 million BTC addresses were in profit, accounting for over 82% of the total number of BTC addresses. A popular crypto analyst, Ali, has indicated that BTC has strong support near $60,365 and it is crucial for the coin to maintain its value above this point.
Ali’s tweet also mentioned that a drop under this support could potentially push the coin back to $57k. This raises the question of whether a price correction is likely.
Possible Price Correction
Analysis of CryptoQuant’s data shows that BTC’s exchange reserve is increasing, which often indicates rising selling pressure and potential price corrections. However, the rest of the metrics appeared optimistic.
For example, BTC’s aSORP suggested that more investors were selling at a loss, which can indicate a market bottom in a bear market. In addition, the coin’s secondary CDD revealed that the movement of long-term holders in the last 7 days was lower than average, suggesting a motive to hold their coins.
In the derivatives market, BTC’s funding rate was increasing and Bitcoin’s taker buy/sell ratio was positive. This indicates a dominant buying sentiment among futures investors, which is a positive signal.
Furthermore, BTC’s price was about to touch the lower limit of the Bollinger Bands, which often suggests an upcoming price rise. If this occurs, BTC might move towards the resistance near $65k in the coming days.