Bitcoin Price Analysis: BTC Eyes $60K As Stock Market Recovers
Highlights
- Bitcoin price trades around $56,000 after recovering 14% since Monday's lows.
- Japan stock market Index, Nikkei, also saw a 10% bounce this week.
- BTC could revisit $60,000 if bulls overcome a key hurdle at $57,289.
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.
Frequently Asked Questions (FAQs)
1. What is the current state of Bitcoin's price?
2. What are the key levels for Bitcoin investors to watch this week?
3. What is the outlook for Bitcoin's price if it fails to recover above $57,289?
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