Bitcoin’s price surged above the critical $66,000 level, indicating a possible bullish turn in the market just two days after the Bitcoin halving event.
Bitcoin successfully reclaimed the $66,000 threshold on April 22, suggesting a shift in market sentiment that could mark the end of the current price correction, according to Kristian Haralampiev, structured products lead at Nexo. In a statement to Cointelegraph, he stated:
“The fact that Bitcoin has reclaimed the $66,600 level on the four-hour chart could be a sign that BTC price is entering a bullish phase.”
Popular crypto analyst Trader Alan also shared a similar sentiment in an April 22 post, highlighting the significance of Bitcoin’s rise above $66,000. He shared a four-hour chart showing the price movement.
According to another well-known analyst, Rekt Capital, Bitcoin’s weekly close above $66,600 makes it a key resistance level for BTC. In an April 22 post, he displayed a one-week chart illustrating this development.
Bitcoin’s MVRV Z-score, a technical indicator used to determine if an asset is overbought or oversold, experienced a healthy correction following last week’s market correction. On April 17, the score fell to 2.08, suggesting that Bitcoin is no longer overbought, according to LookIntoBitcoin.
Philip Swift, the founder of LookIntoBitcoin, noted that this indicator aligns with previous bull cycles, indicating a positive upward trend. He shared the MVRV Z-score chart in an April 22 post.
Despite the recent positive price action, it is still too early to confirm the end of the current correction due to decreased market depth, which may result in increased price volatility, according to Jag Kooner, the head of derivatives at Bitfinex. In an interview with Cointelegraph, he stated:
“While I am optimistic about Bitcoin’s short-term price action, we should be cautious of potential liquidations as more leverage re-enters the market.”
To confirm a definitive move towards new highs, Bitcoin must first surpass the $69,000 mark, as stated by Nexo’s Haralampiev.
Bitcoin is currently facing significant resistance at the $67,000 level, with cumulative short-leveraged positions across all exchanges totaling over $553 million. If Bitcoin manages to break above $69,000, it could result in the liquidation of over $1.12 billion worth of short-leveraged positions, according to Coinglass data.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.