Since March 9, bitcoin has always traded above $ 50.000. More than 2 weeks have passed since then and during this period, the digital currency has also managed to hit 60 thousand dollars on a couple of occasions.
Subsequently, a drop occurred that brought the price down to $ 53. But get below the quotation $ 50 at this point seems very unlikely. Even if no storm can be ruled out in this sector, currently we are looking more at the threshold of 55 thousand than at lower altitudes.
What does it mean to exceed the threshold of 55 thousand dollars
Successfully exceeding the $ 55 threshold means that the price has been "validated" by the bulls. The resistance level closest to the Bitcoin price was around $ 52.500, which can be seen on a 100-hour chart. At the time of writing, Bitcoin has successfully destroyed it and crossed the triangle to reach $ 54.255.
Bitcoin is now well positioned to take advantage of the next resistance level which is at $ 54.900. Breaking this limit will allow the bulls to build momentum and converge to $ 55.500.
Although the possibility of reaching $ 60.000 is determined by Bitcoin's success in reaching just mentioned, there is no telling how bullish the market is from here on out. Meanwhile, a downward correction to $ 52.000 could be sustained if the bulls fail to get their job done. However, a drop below $ 50.000 is not in sight.
Despite the decline, investors have not held back
Meanwhile, analyst Robbie Liu points out that retail investors are still active in the market, despite the steep drop from $ 60.000 to $ 50.000 over the past week. Furthermore, he also pointed out that the Bitcoin futures expiration in June could influence Bitcoin's next price move.
According to him, “On Friday, BTCUSD0625's premium jumped 8% before quickly retracing. The premium has now returned to 5% levels, indicating weak market expectations regarding the late June price. However, as the expiration date is still a long way off, any price increase could rapidly increase the premium.
He didn't forget to add that $ 50.000 is a key level to keep an eye on. However, after the $ 6 billion Bitcoin options expire, Bitcoin will push for self-trading, he says.
“Retail investors have apparently been trying to hit the low for the past two days, while institutions generally want to reduce risk. 50.000 USDT is now becoming a key level to watch. The current event-driven week is ending on a weak note with all the selling pressure coming in after Tesla's announcement. However, with the huge expiration of the options, we could see BTC move more independently over the weekend ”.