BTC Eyes $60K As Stock Market Recovers
Bitcoin (BTC) price suffered a fatal crash last week as it slipped from near $70,000 levels to a low of $48,914. However, the recent 10% bounce in Japan’s stock market index, Nikkei, has caused cryptos, including BTC, to show promising signs of recovery
Bitcoin price eyes a comeback
Despite the brutal 30% correction in Bitcoin price, the five-month, down-trending consolidation’s range low seems to be holding well. Since Monday’s low of $48,914, BTC price has bounced 14% and currently exchanges hands around $56,000, according to TradingView data.
The five-month Bitcoin price consolidation has set up three key levels that BTC investors need to be cautious about:
Value Area Low (VaL) – $61,906
Point of Control (POC) – $66,946
Value Area High (VaH) – $70,283
70% of the range is considered a value area, and the lowest and highest points are termed VaL and VaH, respectively.
A recovery above the immediate resistance level at $57,289 is required. Such a movement will suggest that the bulls are serious. If BTC price manages to create a foothold above the aforementioned level, it will open the path for the recovery rally to continue
Under these conditions, Bitcoin price could target a retest of the $60,000 psychological level after a 4.5% rally from $57,289. Any move beyond this level is unlikely to be sustained, especially if BTC manages to retest the VaL at $61,906.
On the other hand, if Bitcoin price fails to recover above the immediate resistance level at $57,289, it would signal a weakness in the market. Furthermore, the uncertainty surrounding the Japanese stock market is still not cleared, and if the Fed decides to take a drastic step to its dual mandate, it could add to the volatility and trigger a market crash. Such a development should see Bitcoin price prediction suggest a revisit to the $52,287 support floor
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