Why should Bitcoin Break $60,000 soon?
Bitcoin has retreated dramatically after nearly reaching $65,000 highs. The cryptocurrency is currently valued at 53,755.98 dollars, down 3% in the last 24 hours.
Bitcoin soared to $64,870 ahead of Coinbase’s public debut last week but has since fallen to the $53K-$55K range.
While a natural correction is normal after a price surge, market analysts are concerned that Bitcoin’s momentum will stay bearish if it fails to break above $60,000 soon.
According to market strategists, Bitcoin’s leading indicators often display signs of fatigue, and its short-term outlook looks bearish.
“If the largest cryptocurrency isn’t able to break back above $60,000 soon, momentum signals will collapse,” said lead JPMorgan Chase analyst Nikolaos Panigirtzoglou. Inflows into Bitcoin funds have been slow recently, according to the analyst and his team.
Additionally, Bloomberg strategists announced that Bitcoin futures encountered a “steep liquidation” in the last few days. If Bitcoin fails to break through the psychological barrier of $60,000, it can be not easy to reverse its upward trend.
The cryptocurrency is currently seeing resistance at its 50-day moving average, which is located at $56,819. If Bitcoin fails to convert this level into support, it can withdraw even further, retesting the $50,000 mark. This will represent a ten per cent drop from current levels.
As a result, breaking above $60K is critical for Bitcoin to continue its upward trajectory.
Inconstancy may not be Wrong
Despite this pessimistic outlook, some business insiders see Bitcoin’s instability as a sign of maturity. Voyager Digital co-founder and CEO Stephen Ehrlich told –
“Volatility is beneficial to cryptocurrency. It serves various purposes as the crypto ecosystem matures, which we must keep in mind is still a relatively young industry and technology. As they shift toward mainstream acceptance, new and developing industries are inherently unpredictable. In the case of Bitcoin, volatility has been slowly declining over time, and even recent sharp moves have not seen such a significant increase in volatility relative to the past.”
A small step for Coinbase and a massive jump for crypto
Despite recent setbacks for Bitcoin, there is no doubt that the cryptocurrency industry is maturing and steadily gaining mainstream acceptance. Coinbase’s listing has given the crypto sector a boost, allowing institutional and retail investors to get a glimpse into the world of DeFi, NFTs, and crypto.
Many multinational corporations have modified their business models to include cryptocurrency payments.
Venmo is the newest payment service to confirm the incorporation of cryptocurrency payments into its app.
Venmo users would be able to purchase, sell, and store cryptocurrencies.