- BTC was approaching its resistance near its 200-day simple moving average.
- Selling pressure on the coin increased in the last 24 hours.
Bitcoin [BTC] has been on a rising trend, and the king coin was approaching a crucial resistance. The latest analysis revealed that it is imperative for the coin to go above that level in order to enter an actual bull market.
Bitcoin approaches a crucial resistance
After a week of increase, BTC faced a slight correction. To be precise, BTC’s price increased by over 5% in the last seven days. But in the last 24 hours, the king coin’s price dropped marginally.
At the time of writing, BTC was trading at $63,037.03 with a market capitalization of over $1.25 trillion.
In the meantime, Axel, a popular crypto analyst, posted a tweet revealing an interesting development. As per the tweet, it was crucial for Bitcoin to turn its 200-day simple moving average (SMA) resistance into its new support.
If that happens, then only we could enter an actual bull market, as per the tweet. At press time, Bitcoin was testing the resistance.
Therefore, AMBCrypto planned to have a closer look at the coin’s state to see how likely it is for BTC to turn this resistance into its new support.
Source: X
What’s next for BTC?
As per our analysis of CryptoQuant’s data, selling pressure on BTC was rising. For instance, BTC’s exchange reserve was rising. The coin’s net deposit on exchanges was also high compared to the last seven day average.
These two metrics indicated that selling pressure on Bitcoin was high. Additionally, the coin’s aSORP was also red. This suggested that more investors were selling at a profit. In the middle of a bull market, it can indicate a market top.
Source: CryptoQuant
We then took a look at BTC’s daily chart to see whether it’s poised for a price correction. We also found that BTC was approaching a resistance near $64k. The good news was that the MACD displayed a bullish advantage in the market.
Moreover, the Chaikin Money Flow (CMF) also supported the bulls as it moved up, hinting at a breakout above the resistance.
Source: TradingView
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Apart from this, Hyblock Capital’s data also revealed that BTC’s way towards $64k was clear as liquidation would only rise at that level. Generally, a hike in liquidation results in short-term price corrections.
But, in the event of a bearish takeover, it won’t be surprising to see BTC fall to $57k again.
Source: Hyblock Capital
