Bitcoin Holds $60,000 Support Amid Market Volatility

With Bitcoin finding stability just above the $60,000 mark, there's a possibility that altcoins could receive a signal to climb higher in the near future.

Source: www.teknolojioku.com

After trading within a narrow range for much of the week, Bitcoin experienced a sharp decline on April 12 and 13, resulting in approximately $2.5 billion worth of cryptocurrency liquidations, primarily from long positions. This downturn has dealt a significant blow to short-term leveraged long positions that anticipated a continued rally leading up to and following the Bitcoin halving.

The repercussions of Bitcoin's drop have been felt across the altcoin market, with some of the top 20 cryptocurrencies by market capitalization plummeting by around 20%. As a result, Bitcoin's market dominance surged to 56.3% on April 12, reaching its highest level in three years. Despite the recent decline in Bitcoin's price, the fact that it has not dropped below the critical $60,000 support is a positive indication. This implies that the downturn might be a regular pullback within a bullish trend rather than a significant reversal. Traders should exercise caution but need not panic at this stage.

Image source: www.coin360.com

A Comprehensive Analysis Of Bitcoin's Price

Bitcoin has exhibited volatility but has remained within a range bound between $60,775 and $73,777 for an extended period. This indicates a lack of clear consensus regarding the next directional movement. On April 13, the BTC/USDT pair fell below the 50-day simple moving average ($66,743) and breached the $60,775 support. However, the presence of a long tail on the candlestick suggests that bulls are defending the $60,775 level.

In the event of a recovery, resistance is expected at the 20-day exponential moving average ($67,807). Should the price encounter selling pressure at this level, bears may attempt to push the pair below $60,775 once again. Conversely, a breakout above the 20-day EMA could pave the way for a rally towards $73,777.

With the downsloping 20-day exponential moving average (EMA) and the relative strength index (RSI) residing in the negative zone, it appears that bears are currently in control of the market sentiment. Any relief rally is expected to encounter resistance at the 20-EMA. Should the price reverse from the 20-EMA, bears might attempt to breach the $60,775 support once again. If this support level fails to hold, the pair could initiate a downward movement towards the 61.8% Fibonacci retracement level at $54,298.

On the flip side, if the price manages to surpass the 20-EMA, it would be the first indication that the pair may consolidate within the range of $60,775 and $73,777 for an extended period. To signal the commencement of the next upward trend, bulls would need to propel the price above $73,777. This would pave the way for further gains toward $80,000 and subsequently $84,000.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.