Bitcoin Bulls Eye $61K Resistance to Reverse Bearish Trend, Says Analyst

• Bitcoin shows signs of bottoming at $56,000, but a break above $61,000 is crucial for a bullish reversal.
• Increased buying volume near $56,000 suggests strong support, yet Bitcoin needs to clear the $61,000 resistance to regain momentum.
• Bitcoin’s immediate target is $61,000, with potential next resistances at $63,000-$64,000 and $67,000 if bullish momentum builds.

Bitcoin ($BTC) shows signs of a potential bottom around $56,000, according to Captain Faibik. However, it remains in a descending channel on the 4-hour chart. To regain bullish momentum, Bitcoin bulls must clear the $61,000 resistance area. Bitcoin has been trading within a descending channel, characterized by lower highs and lower lows. 

This bearish trend has persisted for several weeks, creating a challenging environment for bulls. The descending channel clearly indicates a lack of upward momentum, requiring a significant push to break free.

Recently, Bitcoin’s price action suggests a potential bottom at $56,000. This is evident from the sharp rebound off the lower boundary of the descending channel. Increased buying volume near this level indicates strong support and interest from buyers. Consequently, this level serves as immediate support for Bitcoin. However, sustaining this support is crucial to prevent further declines.

The key resistance area for Bitcoin is at $61,000. This level represents the upper boundary of the descending channel and serves as a critical barrier for bulls. Breaking above $61,000 would indicate a potential reversal of the bearish trend. Notably, this would signal the start of a new bullish phase. Consequently, Bitcoin bulls need to push the price above this resistance level to regain bullish momentum.

Bitcoin’s immediate target is the $61,000 resistance level. A successful breach of this level could see Bitcoin aim for the next resistance around $63,000 to $64,000. Beyond $64,000, the next significant resistance lies around $67,000. Immediate support remains at $56,000, being the recent low. If $56,000 fails to hold, the next major support is around $53,000, aligning with previous consolidation zones.

Increased buying volume near the $56,000 level suggests strong support and interest from buyers. This volume spike is a positive sign for bulls. Momentum indicators, such as the Relative Strength Index (RSI), should be monitored for signs of bullish divergence or oversold conditions. These indicators can support the case for a bullish reversal. Hence, traders should watch for volume spikes and momentum indicator confirmations to gauge the strength of the bullish move.

The price of Bitcoin is $56,758.98 today, with a 24-hour trading volume of $34,226,145,310. This represents a 2.85% price increase in the last 24 hours and a -6.81% price decline in the past seven days. With a circulating supply of 20 million BTC, Bitcoin is valued at a market cap of $1,119,261,963,491. Notably, with a price decline of -6.80% in the last seven days, Bitcoin is outperforming the global cryptocurrency market, which is down -7.40%.