• 30 May, 2024
Market News

BTC Struggles to Maintain $61K as Technical Indicators Suggest Downward Pressure

Bitcoin (BTC) is currently facing a critical moment, with its price fluctuating around the $61,000 mark, threatening to break below this key support level. Data from TradingView observed BTC’s price movements on May 9, noting a sluggish descent that threatens to reverse the gains from the previous week.

Source: LookIntoBitcoin

This pivotal price point coincides with significant technical benchmarks such as the 100-day Simple Moving Average (SMA) and the Short-Term Holder Realized Price (STH-RP), which are currently at $61,200 and $60,100 respectively. These levels are regarded as crucial support zones in a bull market, and their stability is being tested with the current price trends.

Source: TradingView

Further insights from popular trader Skew, highlighted on social media platform X, emphasize the importance of the $60,600 monthly open as a critical support level. Pointing to a strategic bid placement just below the current trading price, Skew noted, “There is some 100BTC bids stacked here but need to see evidence of absorption of sellers to get strong confluence of demand.”

Monitoring resource CoinGlass also confirmed significant bid liquidity near the $61,000 threshold, suggesting a tactical market play to attract liquidity for selling on bounces. This tactic indicates that some market participants are attempting to lower the price to trigger sell-offs, a move watched closely by traders.

Amidst these precarious movements, a broader technical analysis paints a bearish picture. Several key indicators, including Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) across various time frames, predominantly signal sell. This bearish sentiment is bolstered by other technical measures such as the Awesome Oscillator and Momentum, which also suggest a potential decline.

Despite the predominantly negative signals, oscillators like the Relative Strength Index (RSI) and Stochastic %K provide neutral readings. This indicates a lack of strong buying or selling pressure at the moment, but keeping the market on edge about the next significant move.

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