Bitcoin (BTC) trades near a crucial indicator that often signals a shift in market direction. The position of the crypto asset is critical, with its next move likely to determine the short and medium term trend.
Analyst Daan Crypto Trades, via an X post, notes that Bitcoin’s ability to break above $63k, in line with the indicator, is essential for initiating a bullish rally. However, a failure to hold above $56,500 could signal bearish momentum.
Bitcoin Price Analysis
Daan Crypto Trades shared a chart analysis of Bitcoin on a daily timeframe, highlighting the importance of the 200-day EMA and MA. The 200 EMA shown by a blue line, serves as a dynamic support and resistance level.
#Bitcoin Trading back at the Daily 200EMA.Still yet to break the Daily 200MA which also corresponds with the local highs at ~$63K.Important level to break for the bulls to get the party started.Below the $56.5K level, bears are back in control on the lower timeframes. pic.twitter.com/IechX0SKYi
— Daan Crypto Trades (@DaanCrypto) August 20, 2024
Bitcoin’s closeness to this indicator suggests a critical point where bulls or bears could take control. Additionally, the 200 MA, shown by a purple line, aligns closely with the $63k resistance level.
He stated that this level is, “Important level to break for the bulls to get the party started,” further emphasizing its significance.
Besides, a successful break above this resistance would likely trigger an uptrend, potentially pushing Bitcoin towards new highs. Conversely, the $56.5k support level marks a crucial area where Bitcoin must maintain its position.
This is as to prevent a shift in momentum toward bearish sentiment. A breach below this level could lead to increased selling pressure, driving the price further down to the next support at $52,900.
$63k Breakout Ignites a Bullish Scenario
For Bitcoin to enter a new bullish phase, breaking above $63,000 is necessary. This level, backed by the 200 MA, represents a barrier that must be overcome.
Achieving this breakout would confirm a bullish continuation and indicate that the market is ready to push higher. The $63k mark also coincides with previous local highs, making it a critical point for traders to watch.
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Bearish Risks Loom Below $56,500 Support
On the flip side, failing to hold the $56,500 support could reignite bearish pressure, especially on lower timeframes. This level serves as a key threshold, below which the bears would likely regain control.
Besides, a decline beneath $56,500 would expose Bitcoin to further downside risks, with the next significant support lying around $52,900. A breakdown below this level could confirm an extended bearish trend, leading to a deeper correction.
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The post Bitcoin Bulls Target $63K Breakout to ‘Get the Party Started’ – What’s Next for BTC Price? appeared first on CaptainAltcoin.
