Bitcoin
What’s next for bitcoin after it bounces back to $60,000 this week
Bitcoin is testing a key level once again after the cryptocurrency fell below $60,000 this week for the first time since May 3. As of Tuesday afternoon, it was trading above $61,000, about 17% below its March high of $73,797.68, according to Coin Metrics. Chart analysts, however, do not see buying signals and say there could be another drop, which would be more “harmful” at current levels. “The moderation since March continues and trading can be considered under pressure below the $66,000 resistance,” the cryptocurrency’s 50-day moving average, said Oppenheimer analyst Ari Wald. “There is important support at $57,500, the 200-day average, falling to $56,500, the May low – and a negative breach would be damaging.” Bitcoin has largely been stuck in a narrow range between $60,000 and $70,000 since mid-March, when it reached its all-time high. It is currently suffering from a lack of short-term catalysts, low demand for bitcoin exchange-traded funds, and the selling of bitcoin by miners. BTC.CM = 6 million mountain Bitcoins this year If Bitcoin fails to hold $57,000, Wald added, $49,000 would become its next major downside level. For David Keller, chief market strategist at StockCharts.com, bitcoin’s next downward levels are equally around $58,000, with potential downside between $50,000 and $52,000. Keller noted that buyers typically go for around $60,000. Furthermore, he said, it is reasonable to expect the price of bitcoin to rise once again, as the cryptocurrency often finds support in large, round numbers. RJ O’Brien’s Tom Fitzpatrick identified major bitcoin support at $56,527 and a potential double upper neckline, a bearish M-shaped chart formation comprised of two peaks on either side of a moderate decline. “Below, it would signal at least another 22% drop… and a possibility of up to 29%,” he said in a note to investors. Wald emphasized the strength of the current $57,500 support level and the 200-day moving average. “The double top [is] it will not be completed until the neckline is broken,” he said. Until then, “I always side with the trend, which means I assume the rising 200-day average holds. The bullish action on the NASDAQ-100 suggests that risk tolerance also remains positive.” For the month, bitcoin fell nearly 10%. In early June, it briefly touched the $71,000 level, but has been in steady decline since then.