Bitcoin’s price has surged above the important $66,000 level, indicating a potential shift in market sentiment after the Bitcoin halving just two days ago.
Bitcoin has managed to reclaim the $66,000 mark on April 22, which could be a sign that the current price correction is coming to an end. Kristian Haralampiev, the structured products lead at Nexo, believes that this could turn the tide in favor of the bulls. He stated, “Bitcoin reclaiming the $66,600 mark on the four-hour chart could signal that BTC price is turning bullish.”
Popular crypto analyst Trader Alan also shared a similar sentiment, suggesting that Bitcoin’s price action is becoming bullish. He posted a chart showing Bitcoin’s upward movement above $66,600.
Another well-known analyst, Rekt Capital, highlighted the significance of the $66,600 mark as the main resistance level for Bitcoin. He posted a one-week chart indicating that Bitcoin’s price has closed above this level, potentially indicating a positive trend.
Bitcoin’s MVRV Z-score, a technical indicator used to determine whether an asset is overbought or oversold, has also reset following the recent correction. It fell to 2.08 on April 17, suggesting that Bitcoin is no longer overbought. Philip Swift, the founder of LookIntoBitcoin, believes that this indicates a healthy upward trend, similar to previous bull cycles.
Despite the positive price action, it is still too early to confirm the end of the correction. Jag Kooner, the head of derivatives at Bitfinex, warns of potential price volatility due to the decreased market depth. He remains optimistic about Bitcoin’s short-term price action but cautions against potential liquidation as more leverage enters the market.
To confirm a breakout and reach new highs, Bitcoin needs to reclaim the $69,000 mark, according to Haralampiev. Currently, there is significant resistance at the $67,000 level, with a large number of short-leveraged positions across all exchanges. A move above $69,000 would result in the liquidation of over $1.12 billion worth of these positions, according to Coinglass data.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of the risks involved before making any investment or trading decisions.