Bitcoin Price Recovers! Key Levels to Watch as BTC Eyes $58,000
Zameer Attar9 Sept 20242 min read
Bitcoin (BTC), the largest cryptocurrency by market cap, is showing signs of bouncing back after hitting a monthly low of $55,500. While BTC recently saw a drop of over 10%, it has climbed more than 5% in the past three days, suggesting a potential price reversal.
What’s fueling this uptrend? Are brighter days ahead? Read on for the answers to all your questions.
Bitcoin Price Reversal
With the recent price surge, BTC has broken out from a descending trendline and is now approaching a significant resistance level at $58,000.
At the time of writing, BTC is trading near $56,740, reflecting a 4.5% increase in the last 24 hours. This surge has sparked renewed interest among traders and investors, with trading volume jumping by 86% during the same period.
Bitcoin Technical Analysis
Despite trading below the 200 Exponential Moving Average (EMA) on both the four-hour and daily charts, BTC’s outlook appears positive. The recent price jump came after a bullish divergence was spotted on the Relative Strength Index (RSI) on the daily chart, indicating potential further gains.
Based on past price movements, BTC could climb another 10%, potentially reaching the $62,000 level in the near future.
What On-Chain Data Reveals
In addition to technical indicators, on-chain metrics also support the bullish sentiment. Coinglass data shows BTC’s Long/Short ratio is around 1.095, indicating that traders are leaning bullish (a ratio above 1 suggests a preference for long positions). BTC’s futures open interest has also increased by 6% in the last 24 hours, a sign that traders are building long/short positions.
Watch These Liquidation Levels
The main liquidation zones are around $55,900 on the downside and $57,000 on the upside, with traders at these levels over-leveraged, according to Coinglass data. If BTC reaches $57,000, around $71 million worth of long positions could be liquidated.
On the other hand, if the price falls to $55,900, approximately $91.2 million worth of long positions may be at risk.
Currently, the bulls seem to be in control and could continue to drive the liquidation of short positions in the coming days. As BTC approaches these critical levels, traders will be watching closely to see if the cryptocurrency can maintain its upward momentum or if the bears will push back.
Read Also: South Korean Customs Link Rising Drug Smuggling to Crypto and Telegram
How has the recent price movement affected your strategy? Let’s hear from you!
