Bitcoin’s price has surpassed the critical $66,000 level, signaling a potential shift in market sentiment just two days after the Bitcoin halving event. According to Kristian Haralampiev, the structured products lead at Nexo, this breakthrough could indicate the end of the current price correction. Popular crypto analyst Trader Alan also believes that Bitcoin’s price turning bullish is likely, as it has reclaimed the $66,600 mark on the four-hour chart. Similarly, analyst Rekt Capital notes that the $66,600 level is now acting as a key resistance level for BTC on the weekly chart.
In addition, Bitcoin’s MVRV Z-score, a technical indicator used to assess overbought or oversold conditions, has seen a healthy correction, falling to 2.08 on April 17. This suggests that Bitcoin is no longer overbought and is following a healthy upward trend similar to previous bull cycles, according to Philip Swift, founder of LookIntoBitcoin.
Despite the positive price action, it is still too early to confirm the end of the current correction. Jag Kooner, the head of derivatives at Bitfinex, warns that decreased market depth could lead to more price volatility. However, Kooner remains optimistic about Bitcoin’s short-term price action, although he cautions about the potential for liquidation as leverage re-enters the market.
To confirm a decisive move towards new highs, Bitcoin must surpass the $69,000 level, according to Haralampiev. This level has significant resistance, with over $553 million worth of cumulative short-leveraged positions across all exchanges. A move above $69,000 would result in the liquidation of over $1.12 billion worth of short-leveraged positions, according to Coinglass data.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.