4 July 2024
Bitcoin (BTC) has completed its ninth test of the $60,000 support level, hinting at a potential shift in the cryptocurrency’s trajectory. According to a crypto analyst, Bitcoin faces significant moves ahead and determining the direction of this momentum is crucial.
BTC Retests $60,000 Support For The 9th Time
In an X (formerly Twitter) post published on July 3, a crypto analyst identified as ‘Dana Crypto Trades’ declared that Bitcoin has successfully completed its ninth test for the $60,000 support region. A support level is a price threshold where assets tend to stop falling, signaling the potential for a bounce back in the cryptocurrency.
The crypto analyst disclosed that Bitcoin has maintained a support level of $60,000 for approximately nine months, and during those months it has undergone multiple price tests. While the cryptocurrency showed strength by sustaining this crucial level, Dana Crypto Trades highlighted that the support level eventually failed, resulting in substantial price declines for Bitcoin.
He noted that the distinctive difference between previous price tests and the recent one was that many crypto investors and enthusiasts believed that the $60,000 support level would be Bitcoin’s bottom, anticipating that it would halt further price declines. The crypto analyst revealed that presently opinions seem to be divided about the direction Bitcoin will take with this new retest, revealing that some individuals believe that $60,000 would hold as the support level, while others remain skeptical.
Highlighting Bitcoin’s current lack of momentum, Dana Crypto Trades explained that prices of cryptocurrencies often consolidate around specific levels for an extended period, showing minimal upward or downward movement. He disclosed that the overall high timeframe trend was important in determining the future direction of Bitcoin’s price.
Additionally, He stressed the importance of not dismissing any support or resistance level of Bitcoin until its price has completely and undoubtedly broken through on a higher timeframe. The analyst added that after a period of consolidation, large price movements are often expected in a cryptocurrency. This is because the market builds substantial momentum during the consolidation phase, resulting in a significant breakout or breakdown.
Analyst Predicts Major Price Swings For Bitcoin
In one of his most recent X posts, Dana Crypto Trades shared a BTC price chart, noting that Bitcoin volatility indicators have become less erratic lately. He disclosed that typically when volatility drops to such low levels, it often signals a significant price movement.
As a result, the analyst has suggested that Bitcoin could be getting ready for a major price swing. He also emphasized that while the indicators signal an upcoming big move for Bitcoin, they do not specify the direction of the movement, highlighting the uncertainty of whether BTC will rise or fall.
At the time of writing, Bitcoin’s price dipped below the $60,000 support level, settling at $57,359. The cryptocurrency has experienced a notable decline of over 5.14% within the last 24 hours.