Bitcoin must break $62K resistance line to trigger bullish momentum
Using CoinGlass data, a move to $62,000 would wipe out $1.04 billion in short positions
Recent price action affirms Bitcoin has to “clear resistance” at $62,000 to avoid retesting $49,000. The cryptocurrency last dropped below $50,000 to $49,842 in August. 5, sometimes known as “Crypto Black Monday,” will be its first trip there since February.
Using CoinGlass data, a move to $62,000 would wipe out $1.04 billion in short positions—a move that many future traders would not have anticipated. A rise towards the August 2 high of $65,596 is projected if Bitcoin closes above $62,066 because it would establish a higher high on the daily chart. This could result in an additional surcharge of 6% to test the weekly resistance level at $69,648.
However, several crypto traders believe Bitcoin is unlikely to drop below $50,000 anytime soon. In an August 21 statement by Kraken, “The price action suggests a corrective pattern rather than a strong bullish reversal.”
At the time of writing, Bitcoin has not touched $62,000 since August. It is currently trading at $61K., as stated on Binance.
Bitcoin’s current value indicates it’s trading close to its 200-day exponential moving average. This shows that the most recent price data is given more weight. Throughout the last 15 days, Bitcoin stayed between $57,115 and $62,066 (the Fibonacci retracement levels of 38.2 percent and 61.8%, respectively, drawn from the high on July 29 to the low on August 5).
It is nearly at its major resistance level at $62,066 as of Friday, trading marginally higher by 0.7 percent at $60,772. Bitcoin may fall to $57,115 if it can’t close above $62,066. After that, it may drop another 19% to test the $49,917 daily support level again.
Most bitcoin investors, according to recent fundamentals, have a long-term outlook. Bitcoin had its least profitable In terms of transaction fees, for a long time.
The “HODL” strategy, which involves purchasing and holding Bitcoin for an extended period to avoid being impacted by short-term price fluctuations, seems to have been adopted by most Bitcoin owners. Glassnode data also highlighted that approximately 75% of the Bitcoin in circulation has not changed in more than six months, suggesting that investors buy more Bitcoins in anticipation of a bull market.
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