Bitcoin Cemented At $60K? Why It Could Smash All Resistance

Bitcoin Cemented At $60K? Why It Could Smash All Resistance

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November 8, 2021 by admin
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Approaching its all-time high above $67,000, Bitcoin sits at profits across the board. The benchmark crypto took off yesterday moving from the low of its current levels and destroying all opposition to trade at $66,428, as of press time. BTC on a rally in the daily chart. Source: BTCUSD Tradingview The general sentiment in the
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Approaching its all-time high above $67,000, Bitcoin sits at profits across the board. The benchmark crypto took off yesterday moving from the low of its current levels and destroying all opposition to trade at $66,428, as of press time.

Bitcoin BTC BTCUSD
BTC on a rally in the daily chart. Source: BTCUSD Tradingview

The general sentiment in the market seems to have flipped bullish once more after a week of sideways price action. This consolidation time period appears to have given bulls enough impulse to taken on its next major resistance at $67,000.

Related Reading | S2F Creator PlanB Believes In $98k Nov Target For Bitcoin

In low timeframes, as seen below on Material Indicator’s Fire Chart, BTC’s price is accumulating support at $65,000, after this level turned from resistance to support. The chart uses CVD data to determine the buying/selling pressure across multiple price levels.

At $67,000, there is around $33 million in ask orders that represent the bulls’ biggest obstacle to place Bitcoin back into price discovery. Similarly, at $65,000 there are around $16 million in bids orders that could operate as good support for the short term.

Bitcoin BTC BTCUSD FC
Source: Material Indicators

Additional data provided by Material Indicators register a spike in buying pressure from whales and medium size investors. This data is supported by research firm Santiment, as the chart below shows, addresses with over 10,000 to 100,000 BTC accumulated over 43,000 BTC in the past 5 days resulting in more fuel for Bitcoin.

In that sense, pseudonym analyst CryptoBirb presented a potential scenario for the price of Bitcoin after it broke out to its current levels. This analyst believes BTC could retest the low of $60,000 before the bulls have enough ammunition to propel the cryptocurrency to $80,000.

Related Reading | Bitcoin Starts Fresh Rally, Why BTC Could Breach $70K This Time

Via Twitter, CryptoBirb claimed the following:

$BTC about to pull off new ATH and noobs trying to fade the breakout will only feed this monster enough to fly past $80,000 (…) retest is optional, if I were you, I would not base my entire strategy on it.

Bitcoin Price Validated At $60,000?

In support of the bullish thesis, analyst Willy Woo presented the Bitcoin Supply Profile indicator. According to Woo, this metric shows the BTC market dynamic and how coins have exchanged hands in 2021 suggesting that investors have accepted the $50,000 to $60,000 levels as major support zones. Woo said:

Contour map of every bitcoin at the price they last changed hands between investors. Huge price validation between $50k-$60k. Bitcoin as a $1T asset class IMO is now cemented; hard to see it dropping below this zone.

The next days will be crucial to determine if Bitcoin will retest the lows at these levels or if it will break to the upside with its eye set to burn straight into $100,000 by the end of the year.

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