BTC’s Upswing Depends On This Crucial Support
Bitcoin price trades in the red on Thursday as bulls struggle to stay afloat. The support around $61,500 is crucial for BTC to resume the upswing.
Bitcoin price opened the day on Thursday trading in the red tanking further below the October 20 downtrend line. BTC is currently trading at $61,519 in a third straight bearish session today as seen on the four-hour chart.
The same four-hour chart reveals that Bitcoin has been consolidating between $61K and $64K price range since October 29. This amid increasing regulatory talks and the launch of the first ever Bitcoin futures EFT in the US.
The 50-SMA Support is Crucial For Bitcoin Price Bulls
Today’s bearish price action has seen the big crypto lose the 100-period simple moving average (SMA) support at $61,995. Bitcoin bulls are currently struggling to defend the $61,436 support wall embraced by the 50 SMA and the accelerated trendline.
If selling pressure continues and BTC loses the aforementioned support as well, it will drop to tag the $60,000 psychological level. A drop further could see Bitcoin tank towards the demand zone defined by the $58,058 and $59,861 price range (green band).
This pessimistic thesis is validated by the position of the RSI at 46.79 and its downward movement towards the oversold region. This is an indication that the bears are currently in control of the Bitcoin price.
BTC/USD Four-hour chart
For this bearish outlook to be invalidated, BTC bulls must ensure a closure above the 50 SMA at 61,436. If this happens, the price of the bellwether cryptocurrency will gain momentum to tag the 100 SMA at $61,995.
A decisive bullish breakout will be achieved once Bitcoin rises above the downtrend line towards the supply zone (red band). Bitcoin could meet immense selling pressure from this zone which will have to be overcome. After which the next logical move would be to retest the ATH high above $67,000 or rally towards $70,000.