Bitcoin has been fluctuating close to the $60,000 level. (Photo illustration by Chesnot/Getty … [+]
Bitcoin fell below $60,000 today, dropping to its lowest point since early May, but it quickly bounced back.
What’s next for the digital currency as it fluctuates close to this key, psychological level?
Several market experts weighed in, offering technical analysis on the world’s most prominent cryptocurrency.
“We will be monitoring the price closely to see whether the support level around $60K holds,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, said through comments submitted through email.
Should bitcoin break through support near $60,000, the next support level will be at $50,000, he said.
However, if the digital asset should trend higher, its next key level of resistance will be $70,000, stated DiPasquale.
Grant Tungate, head of business development for Blockforce Capital, also weighed in, offering a different perspective via emailed input.
Should bitcoin fall below the $60,000 level, there is a “key support zone” between roughly $55,000 and $58,000, he stated.
“The 200d moving average is $57.5k, and the May 1st multi-month low ~$56.5k,” Tungate noted.
William Noble, who currently serves as director of research and content development for Emerging Assets Group, pinpointed different key levels in his technical analysis.
“Bitcoin
Bitcoin
“There are a lot of reasons to expect bitcoin to move through that level. Bitcoin is oversold and there has likely been capitulation selling in other sectors of the crypto market,” emphasized Noble.
The chart below provides additional detail on this technical level.
This chart shows some key technical levels for bitcoin
“That said, if bitcoin can not rally back above 61.1k there is reason to believe that bitcoin could fall to the next support level at 56.2k,” he added.
“The most important thing to watch for on the chart is if traders and investors will be willing to pay higher prices and not just buy big down moves,” emphasized Noble.
“If there is no demand once price rises, then a move to 56k becomes very likely. In other words, beware of failed rallies.”
Tim Enneking, managing partner of Psalion, supplied some additional input on this matter.
“BTC wicked down through technical support at $59.6k and then immediately broke back up above $60k,” he stated.
“If $59.6 doesn’t hold, the next support level is at $56.7k. Should that break (and it looks unlikely at the moment), the next support level is just over $52k,” noted Enneking.
“To the upside, there will be strong resistance around $63k and $67.3k,” he added.
“Given the aftermath of prior halving cycles, however, I would expect BTC to be rangebound in the low $60’s and high $50’s for most of Q3,” said Enneking, offering some thoughts on the cryptocurrency’s outlook.
“We shouldn’t let the ‘early’ ATH because of the spot BTC ETF approval in the US affect us too much,” he claimed.
“Based on those prior cycles, the real bull market is in 2025!”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.