• 22 June, 2024
Market News News

Bitcoin’s Rally Pauses, But Bulls Eye Further Upsides After Consolidation

Bitcoin recently embarked on a notable journey, making headlines as it surged above the $37,200 resistance zone. However, this bullish streak hit a temporary pause, as the digital currency market experienced a minor correction. Nevertheless, market enthusiasts remain optimistic that Bitcoin’s upward trajectory is far from over.

The surge began with Bitcoin rallying above the crucial $36,500 resistance zone. With strong momentum, it breached the $37,200 resistance barrier, marking a substantial gain of over 5%. The digital gold reached a multi-week high at approximately $37,971 before experiencing a brief downside correction. This correction briefly dipped below the $37,000 level.

Source: TradingView

The correction was modest, with the price retracing to below the 50% Fibonacci retracement level of the previous upward movement, which extended from the $35,100 swing low to the recent high of $37,971. Notably, Bitcoin managed to maintain its position above the $36,200 mark and the 100-hourly Simple Moving Average (SMA).

Bitcoin (BTC) is priced at $36,632.47, reflecting a notable 5.97% increase over the past 24 hours. With a market cap of $715.73 billion, Bitcoin remains the leading cryptocurrency. The 24-hour trading volume stands at $34.09 billion, securing the second spot in terms of volume. Impressively, the volume-to-market cap ratio is at 4.76%, highlighting a healthy level of liquidity and market activity. These statistics underscore Bitcoin’s continued prominence and sustained interest and participation within the cryptocurrency ecosystem. 

What’s interesting to note is that the price has held firm around the 61.8% Fibonacci retracement level, which extends from the $35,100 swing low to the $37,971 high. The current scenario sees Bitcoin consolidating in the vicinity of $36,750, with aspirations of resuming its upward journey. Immediate resistance stands at the $37,000 level, beyond which the price could surge towards the $37,300 mark.

Should the bullish trend continue, Bitcoin may make a formidable push towards the $37,800 level. Should the momentum persist, traders and investors alike eagerly await the prospect of Bitcoin crossing the $38,000 threshold. However, in the event that Bitcoin fails to overcome the $37,000 resistance zone, it could initiate a corrective phase. In this case, initial support can be found at the $36,500 level. If the bears gain further control, the $36,200 zone and the established bullish trend line will become pivotal support levels to watch.

Dipping below $36,200 poses a risk of more significant downside movement, possibly bringing Bitcoin closer to the crucial support at $35,500 in the near future. These critical support and resistance levels will undoubtedly be closely monitored by market participants, making Bitcoin’s journey one to watch in the coming days.

In conclusion, Bitcoin’s recent bullish run showcased its strength as it surged above key resistance levels. The cryptocurrency’s ability to hold above key support and Fibonacci retracement levels suggests that the bulls are not yet finished. As the market remains on the edge of its seat, the next move for Bitcoin will determine whether it continues its ascent or experiences a temporary setback. 

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