Bitcoin [BTC] has maintained its uptrend and the leading coin is approaching a key resistance level. New analysis shows that the coin breaking above this level is essential to enter a true bull market.
Bitcoin Approaches Key Resistance Level
After a week of growth, BTC has faced a slight correction. Specifically, the price of BTC has increased by more than 5% in the past seven days. However, in the past 24 hours, the price of this King Coin has decreased slightly.
At the time of writing, BTC is trading at $63,037.03 with a market capitalization exceeding $1.25 trillion.
Meanwhile, Axel, a popular cryptocurrency analyst, posted a tweet revealing an interesting development. According to the tweet, it is extremely important for Bitcoin to flip the 200-day resistance level into new support.
If that happens, only then can we enter a real bull market, as mentioned in the tweet. At the moment, Bitcoin is testing this resistance.
Therefore, TinTucBitcoin will take a close look at the state of this Coin to assess the possibility that BTC can convert resistance into new support.
What Will Happen to BTC Next?
According to data analysis from CryptoQuant, selling pressure on BTC is increasing. For example, BTC reserves on exchanges are increasing. Deposits of this coin on exchanges are also higher than the average of the past seven days.
These two indicators show that selling pressure on Bitcoin is high. Additionally, the coin’s aSORP is also in the red, indicating that many investors are selling at a profit. In the context of a bull market, this could indicate a market peak.
We took a look at the daily chart of BTC to determine if a correction is imminent. We also found that BTC is approaching resistance around $64,000. The good news is that the MACD indicator shows the bullish edge in the market.
Moreover, the Chaikin Money Flow (CMF) indicator is also favoring the bulls as it is trending up, suggesting a possible breakout of the resistance level.
Additionally, data from Hyblock Capital also shows that BTC's path to $64,000 is open, as liquidations only increase at this level. Typically, increased liquidations lead to short-term price corrections.
However, in the event of a negative impact, it would not be surprising if BTC returns to $57,000.
