Bitcoin’s price is currently hovering around a critical level of $66,000, aiming to validate a clear trend. This threshold is important as it represents the realized price, or the average purchase cost, for many traders. Analysts view that traders won’t likely sell around $66K as selling below this level will trigger losses. As a result, we might soon see a bounce above this level to avoid potential losses.
Bitcoin Traders At Crossroads
Over the last 24 hours, the BTC price has been attempting to surge above $66K; however, there’s a tough battle between bulls and bears. According to Coinglass data, Bitcoin witnessed a total liquidation of nearly $44 million and sellers liquidated around $30 million worth of positions.
At this point, traders find themselves at a crossroads. Those who purchased Bitcoin at or below the $66,000 mark have already realized their profits, represented by the purple area in the chart. This means they have sold their holdings at higher prices and locked in their gains. However, for those who still hold their Bitcoin, selling at the current level would result in realizing losses, as the market price has yet to exceed their purchase cost significantly.
Analysts believe it creates a psychological barrier for traders who are hesitant to sell at a loss. This hesitation can lead to reduced selling pressure, potentially supporting the price and defending a significant drop. On the other hand, if the price fails to break above the $66,000 level decisively, it could lead to increased anxiety among traders, triggering them to sell and cut their losses, which could result in downward pressure on the price.
Also read:
Bitcoin Bulls Charge Past $66K on Positive Inflation News, Triggers Short Squeeze
According to insights from QCP Capital, the U.S. CPI figures caused a breakout across various risk assets, sending BTC back above the $66,000 mark. They anticipated bullish momentum that could drive prices back to the highs of $74,000. Additionally, they noted increased buying activity, with investors acquiring 100-120k BTC Calls for December 2024.
What’s Next For BTC Price?
Bitcoin surged above the 20-day exponential moving average at $64K, signaling that the bulls have absorbed the supply. However, the price failed to hold its momentum above $66K as bears strongly defended further surges. As of writing, BTC price trades at $65,120, declining over 0.4% in the last 24 hours.
If buyers sustain the momentum and push the price above the 50-day simple moving average ($67,517), it could lead to a potential rally towards the strong resistance at $74K. Bears may put up a strong defense at this level.
To halt the upward movement, bears will need to defend the 50-day SMA and pull the price back to the $60K support. Bulls are expected to defend this level vigorously because if it fails, the BTC/USDT pair could drop to the 61.8% Fibonacci retracement level of $56,500.
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Bitcoin
Cryptocurrency
Price Analysis