Bitcoin (BTC) is rebounding this weekend with positive macroeconomic data and after the German government liquidated its holdings. Looking further, a prominent crypto analyst set what he believes is a “crucial support level” for the cryptocurrency price.
The analyst is Ali Martinez, who bases his projection on on-chain data according to the largest volume of BTC purchases.
Notably, data shared from IntoTheBlock shows 1.44 million addresses acquired nearly 660,000 BTC at Martinez’s “crucial support level.” This level ranges between $56,768 and $58,508, averaging $57,677. The analyst then recommends traders closely watch the $57,670 support.
On the other hand, Ali Martinez points out the $61,340 and $64,620 levels as key resistance.
Bitcoin technical price analysis: support and resistance
As of this writing, Bitcoin eyes the $60,000 psychological resistance and the previous four-month range support. This crucial level also coincides with the 30-day exponential moving average (30-EMA), increasing its relevancy.
Trading at $58,929, BTC has recovered from a drop to $53,542, but there is still room for further losses, considering the 365-EMA marking strong support at $50,857.
Bitcoin (BTC) daily price chart. Source: TradingView
Bitcoin price context
Interestingly, the German government unloaded billions of dollars in Bitcoin in the last week. This created relevant selling pressure in BTC markets, holding the asset’s price below previous crucial support levels.
The sell-off, however, has reached an end this Friday, renewing the optimism among Bitcoin investors.
Moreover, Mt. Gox communicated that it would start making the Bitcoin and Bitcoin Cash (BCH) repayments, although it may take 90 days for the total amount to be available in the destined crypto exchange accounts for trading.
Presidential candidate Donald Trump also confirmed his presence as a speaker at the U.S. Bitcoin 2024 event. This confirmation sparked bullish chants among the BTC crowd, although more idealistic supporters expressed concerns.
Now, all eyes are on Bitcoin, waiting for its performance to set the direction for the 2024 second half. Most experts are urging traders to be cautious and avoid high-leveraged positions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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