$59,600: Analyst Explains Why Bitcoin Must Stay Above This Level
30 April 2024 - 8:00AM
NEWSBTC
Bitcoin bulls may soon be back in business. According to Willy Woo,
an on-chain analyst, market data shows that urgent “market
sells” responsible for forcing the coin from all-time highs are now
falling. This development may prop up prices, preventing further
sell-offs. Bitcoin Selling Pressure Easing This preview is due to
falling Cumulative Volume Delta (CVD) data, an on-chain indicator
that can also track market sentiment. Specifically, it tracks
buying and selling aggression from market participants. Now that
CVD is dropping, Woo says more BTC holders are likely willing to
weather the storm. Their decision may directly support
prices. Woo adds that BTC must reject selling pressure and
end the current short-term weakness as things stand. As on-chain
data shows, BTC should stay above $59,600. The CVD lie has
historically separated bullish and bearish zones. Related
Reading: Polygon In Peril: Will MATIC Bounce Back Or Stay Stuck In
The Sub-$1 Doldrums? Based on this, BTC should remain
above the $60,000 round number for the uptrend to be sustained. If
not, and bears take over, pressing prices lower below the CVD level
could signal the beginning of a new bear regime. Thus far, BTC is
under immense selling pressure, shaving approximately 15% from
all-time highs. The coin has support at around the $60,000 and
$61,000 zone, moving inside a range. Resistance is at an all-time
high of around $74,000 on the upper end. Based on this
preview, any losses below $60,000, as Woo notes, would likely see
BTC dump. The coin might drop to $53,000 in the short term,
torching stop losses and fueling the sell-off. Will Hong Kong Spot
ETF Launch Lift Prices? Whether BTC bulls will flow back depends
mostly on institutional involvement in the days to come. Following
the approval of spot Bitcoin exchange-traded funds (ETFs) in
January, prices spiked higher, breaking previous all-time highs.
Institutional involvement has been vital. However, inflows have
slowed down, especially in the last two weeks of April. Analysts
are now looking at the launch of spot Bitcoin ETFs in Hong Kong on
April 30. Related Reading: Ethereum Fees Dive: Will This
Spark A Surge In Network Activity? In a recent interview, Zhu
Haokang, the Head of Digital Asset Management in Hong Kong, is
bullish. Haokang expects trading volume to eclipse those seen in
the United States. The executive says the product is unique,
allowing for a physical subscription that’s more attractive for BTC
miners. Moreover, it is global, drawing interest from Singapore and
the Middle East investors. Feature image from DALLE, chart from
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