Bitcoin is currently at a crucial point based on the daily chart formation. The battle between bulls and bears is ongoing, with sellers having the upper hand despite recent price stability.
One analyst pointed out that Bitcoin broke below the 200-day moving average after last week’s losses, which is a significant development. The 200-day moving average had previously acted as critical support during the last bull cycle. The break below this level last week was decisive.
Although the analyst acknowledged the bearish sentiment, they highlighted that there has been no confirming bear bar yet. For bears to take control, prices would need to break below $56,500 and drop below $53,500, marking last week’s low.
On the other hand, if Bitcoin is to reverse its losses, it is essential for prices to reject last week’s losses and move higher, closing above the 200-day moving average. This recovery could signal the start of an upward trend, continuing the momentum from Q1 2024.
Traders are closely monitoring the psychological line at $60,000 and the possibility of closing above $66,000. A successful break above these levels could lead Bitcoin to retest $72,000, an important liquidation level.
In addition to price movements, traders are also keeping an eye on inflows to spot Bitcoin exchange-traded funds (ETFs). Recent sell-offs by the German government have added pressure on Bitcoin, limiting gains and reducing upside momentum.
Top spot BTC issuers like BlackRock, Fidelity, and Grayscale have experienced outflows in recent weeks, contributing to the downward trend. If sellers continue to dominate the market, more outflows from spot Bitcoin ETF issuers could be expected.
While the market outlook remains uncertain, the potential for a turnaround in Bitcoin’s price still exists. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.