Bitcoin dropped marginally in the last 24 hours.
The market indicators looked optimistic for the king coin.
Bitcoin [BTC] has once again managed to cross the psychological resistance of $61k in the past few hours. But concerns lurked as the king was still close to a crucial support.
The latest analysis revealed that a plummet under that support could push BTC down to $57k in the coming days.
Bitcoin passes $61k again!
Despite a marginal price drop in the last 24 hours, BTC did cross pass the $61k mark. At press time, the king coin was trading at $61,173.50 with a market capitalization of over $1.2 trillion.
As per our analysis of IntoTheBlock’s data, over 44 million BTC addresses were in profit, which accounted for over 82% of the total number of BTC addresses.
In the meantime, Ali, a popular crypto analyst, posted a tweet revealing crucial support for BTC. As per the tweet, the king coin had strong support near $60,365. It was vital for the coin to hold its value above that mark.
The tweet also mentioned that a drop under that support could pump the coin back to $57k again.
Is a correction likely?
Since the aforementioned analysis highlighted crucial support, AMBCrypto checked Bitcoin’s on-chain data to better understand the odds of it falling to that level again.
As per our analysis of CryptoQuant’s data, BTC’s exchange reserve is rising. Whenever the metric rises, it means that selling pressure is rising, which often causes price corrections. However, the rest of the metrics looked pretty optimistic.
For instance, BTC’s aSORP suggested that more investors were selling at a loss. In the middle of a bear market, it can indicate a market bottom. The coin’s secondary CDD revealed that long-term holders’ movement in the last 7 days was lower than the average.
They have a motive to hold their coins.
Source: CryptoQuant
Apart from this, things in the derivatives market also looked good. BTC’s funding rate was rising. On top of that, Bitcoin’s taker buy/sell ratio was green.
This clearly indicated that buying sentiment was dominant among futures investors, which can be considered a positive signal.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
The better news was that BTC’s price was about to touch the lower limit of the Bollinger Bands. Whenever such an incident happens, it hints at a price rise soon.
If that happens again, then BTC might move towards the resistance near $65k in the coming days.
Source: TradingView
