• 28 May, 2024
Market News

Bitcoin Hits 2021 Peak: Analysts Spot BTC’s Struggle Around the $70K Mark

Bitcoin’s market is experiencing notable fluctuations, showing its highest weekly close since 2021. In a detailed thread, analyst Skew has dissected Bitcoin’s recent performance, shedding light on the highest weekly close. This has naturally led to a price pullback from weekend activities. The spotlight shines on the 4-hour systematic trends, particularly the 4H 21 EMA and 4H 55EMA, combined with critical indicators such as the RSI 50 and Stoch RSI. These metrics offer a nuanced view of Bitcoin’s short-term trajectory.

Moreover, a significant technical area for Bitcoin, according to Skew, ranges from $65.5K to $63.5K, serving as a crucial buffer against deeper dips. This insight underscores the importance of the weekly opening, which could signal the market’s direction. Strength in reclaiming positions could propel prices higher, whereas failure may trigger a deeper pullback.

Additionally, Skew notes that Bitcoin’s price struggles around the $70K mark, particularly on Binance Spot, due to a noticeable lack of spot bids to counteract large asks. This has led to increased interest in bids starting from $60K, presumably as a defensive strategy against further declines. The market, as described, is experiencing a phase of condensed price movements attributed to the lack of passive spot buyers.

In parallel observation, the analysis extends to Coinbase Spot, where an overwhelming stack of ask liquidity of up to $100K is noted. However, consistent spot selling of around $70K has become a significant trend. The attention is now on the $60K level, deemed the consensus for spot demand, suggesting a base level for buyer interest.

Delving deeper into market mechanics, Skew highlights the roles of aggregate CVDs and Delta in deciphering Bitcoin’s market sentiment. The $68K price point emerges as crucial, indicating a significant buyer at this level, particularly on Coinbase. The analysis contrasts the Spot CVD’s incline with the evident momentum loss behind price movements, signaling a notable shift in market dynamics.

Complementing this thorough analysis, Daan Crypto Trades, a renowned crypto expert, offers a long-term perspective, emphasizing the historical importance of the Weekly 200MA as a strategic accumulation point for Bitcoin. Despite losing this critical level for the first time in this bear market, the long-term outlook remains bullish, hinting at its continued relevance in subsequent market cycles.

These analyses by Skew and Daan Crypto provide a comprehensive view of Bitcoin’s current market conditions, blending technical insights with historical perspectives. This collaborative effort paints a picture of a market at a crossroads, marked by pivotal price levels and crucial technical indicators that will shape Bitcoin’s path forward.

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