Bitcoin needs to break the $62,000 resistance level to avoid another Black Monday.
Date: 2024-08-23 Author: Henry Casey Categories: CRYPTO PAYMENTS
According to analysts at one of the cryptocurrency exchanges, Bitcoin is at a critical stage: it needs to reach and hold at $62,000 to avoid a retest of $49,000.
Despite this, many crypto traders believe that Bitcoin is unlikely to fall below $50,000 anytime soon.
“Price dynamics point to a corrective pattern rather than a strong bullish reversal,” Kraken’s technical market review says.
Additionally, analysts noted that Bitcoin is trading near its 200-day exponential moving average at $59,500, lending more weight to the latest price data.
To avoid a retest of $49,000, Bitcoin must “break resistance” at $62,000, Kraken added.
The last time Bitcoin dipped below $50,000 was on August 5, when it hit $49,842. That day was dubbed “Cryptocurrency’s Black Monday” as it was the first time the price had reached that level since February.
Breaking through $62,000 could come as a surprise to many futures traders, leading to the liquidation of $1.04 billion in short positions, according to CoinGlass.
“This level is critical as failure to hold could signal a deeper correction,” Kraken wrote.
Anonymous crypto trader Profit Blue expressed a similar view in a post on X on August 22 to his 257,100 followers.
“If Bitcoin breaks $62,000 with confidence, it will likely target a new all-time high. Otherwise, it will fall back below $50,000,” Profit Blue wrote.
Meanwhile, other traders believe the downtrend is ending and the recent drop was just a buying opportunity.
“This was your last chance to buy Bitcoin below $60,000,” crypto commentator Alex Becker wrote to his 1 million X followers on August 22.
“Bitcoin $60,000... 4x from the bottom. “Just like before the 2017 and 2020/2021 rally,” added crypto trader PlanB.
