Bitcoin (BTC) is facing significant resistance that is keeping the BTC price rebound below $60,000.
BTC/USD recovered up to 6.2% from this week’s lows but failed to break a key trendline, data from Cointelegraph Markets Pro and TradingView showed.
Moving average threatens BTC price “trial”
Bitcoin fell 23% from its all-time highs through April and May, and so far, a return to BTC price discovery remains unlikely.
As Cointelegraph reported, Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, expects BTC/USD to feature trading in a range below $70,000 by August.
But first the $60,000 needs to be recovered and so far the trend line protecting it is beating the bulls and winning.
Radar has Bitcoin’s 100-day moving average (MA) at $59,930 as of May 3.
This trend line has served as market support since October 2023 and provided a floor until the Bitcoin bull market in the first half of 2023.
But now the price is printing a full daily candle below it.
Leave a Comment Commenting on this phenomenon, trading resource Material Indicators agreed that bulls are “facing strong technical resistance at the 100-day MA.”
The attached chart shows one of Material Indicators’ proprietary trading tools flashing green on the daily time frame.
“Reclaiming the 100-day moving average would be a big deal for Bitcoin bulls and could lead to a short squeeze.” Co-founder Keith Alan continued From X’s post
“Rejection will be an ordeal.”
Underwater Bitcoin Short-Term Holders
Another BTC price hurdle that needs to be cleared on the road to recovery is the Short Holder Realized Price (STH-RP), a classic bull market support level.
Related: Bitcoin Price Correction ‘Very Common’ as $56,000 Low Holds — Peter Brandt
This represents the total cost basis for more speculative Bitcoin holders (wallets that store BTC for 155 days or less).
If the price reverts to STH-RP, which has happened several times in recent weeks, it could act as solid support, as it has done for most bull markets since early 2023.
STH-RP hit $59,684 on May 1, the most recent date for which figures are available from on-chain data resource Look Into Bitcoin.
Therefore, this indicator forms another major trend line centered near $60,000.
In his latest X commentary, Cubic Analysts CEO Caleb Franzen included STH-RP among his resistance levels of choice.
“My personal line for ‘Risk On’ closed above $61,000 for the day. “There is a lot of work to do,” he concluded.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.