Analysis: Bitcoin is doing its best not to fall below $60,000
Bitcoin has been trying for some time to not drop below $60,000. The currency fell every time it reached $62,000, but that changed yesterday. BTC has finally broken above this price, so what can we expect?
Price back above $62,000
We start this analysis with a look at the weekly chart, where each candle represents 7 days. This is important to analyze the strongest price levels. At the moment, this is one, but a big one. I am talking about the red zone (62,000 dollars to 67,000 dollars). This level has caused price changes several times.
So far, Bitcoin has managed to close around this zone every week (including yesterday’s weekly candle). The coin struggled throughout the week to get back past $62,000 – as we show later in this article – but the coin is now happily trading at a price of $62,800. So BTC is recovering.
The negative scenario
Of course, a lot can still happen during the week, but it is good to see that the coin does not fall below $60,000 (and is now even back in the red zone). This is a very important price level that can cause a further drop, if the coin falls below it.
There could still be a negative scenario, where the coin does fall below $60,000, and in that case there is only one place left that can provide support. That is the previous long-term low. It is around a price of $56,500 (indicated by the red line).
It doesn’t have to happen – especially now that the currency is going up again – but it is good to have these levels clear in advance, in case BTC does something crazy this week. Until then, things aren’t looking too bad for Bitcoin.
Finally back in red zone
To analyze this better, let’s also take a quick look at the daily chart. Here, each candle represents 24 hours, which makes it easier to see that the coin had trouble getting back into the zone. This was only achieved last weekend.
If BTC recovers from here, the coin will have a good time. The condition for this is that the currency now rises again and, above all, stays away from 60,000 dollars. This should probably work out as reclaiming the $62,000 will have a positive effect on the price. Still, it’s good to be prepared for the worst, so keep an eye on these levels.
