Bitcoin Maintains Bullish Momentum, Eyes $72,000 Resistance Amid Potential Risks
Summary:
On May 19, Bitcoin hovered around $67,000 with notable liquidity around spot price. While bulls retained an upward momentum marked by gains above 10% for the month, traders identified the $72,000 mark as a major resistance zone. However, analysts remained optimistic, citing the 1% increase in BTC price as potentially introducing a new phase in the bull market. Meanwhile, some traders predict Bitcoin could retest lower levels or see altcoins experience a steeper decline.
On May 19, Bitcoin hovered around $67,000, strengthening its position as it drew closer to the end of the week, buoyed by increased spot price liquidity. According to data from Cointelegraph Markets Pro and TradingView, bullish momentum held firm throughout the week, leading to a month-on-month increase exceeding 10%.
The $72,000 mark is now the major challenge lying ahead for Bitcoin, as touted by esteemed trader Daan Crypto Trades. He pointed out that although Bitcoin has cleared a sizeable block around $67.4K, substantial levels remain at approximately $68K, and most of the liquidity currently resides in the $72K region. According to a CoinGlass chart shared by Daan, most of the previously mentioned barriers have been cleared and the noteworthy level to watch would be around the $60K mark.
Looking at the current spot price, liquidity concentrations lie at $66,500 and $67,800. Daan Crypto Trades underscored the 100-day moving average of Bitcoin as a crucial long-term support indicator and a valuable instrument for evaluating mid to high timeframe momentum.
Rekt Capital, a renowned trader and analyst, concurs with the optimistic view on Bitcoin, stating that a mere 1% increase in BTC price could prelude the next phase of the bull market. He asserted that Bitcoin only needs to decline a further 1% to ensure a successful post Bull Flag breakout retest and to maintain upward progression.
Yet, some more cautionary perspectives stem from Credible Crypto, another trader and commentator, among others. A post on May 17 hinted that the BTC/USD pair could potentially retest the $60,000 level or even below. He warned of a probable drop to the $59-60k region, suggesting that though the blue zone at $62-63K could offer temporary relief, it's likely to relent eventually.
Credible Crypto also warned that if this scenario unfolds, altcoins are expected to experience a greater downtrend. If Bitcoin marks down to $59-60K, which is a 10% decrease, the respective drops for many altcoins would be considerably higher, he concluded. Note, the content of this article does not offer investment advice or recommendations. Investing and trading involve risk and readers are advised to conduct their own research before making a decision.
Published At
5/19/2024 12:18:43 PM
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