Monitoring Bitcoins Crucial Support and Resistance Thresholds

Bitcoin (BTC) has recently exited a four-month price range, signaling a shift in sentiment from bullish to neutral and now to bearish. Finbold analyzed critical support and resistance levels that cryptocurrency traders and investors should monitor going forward.

As of the latest update, BTC is trading at $56,825, positioned midway between the psychological levels of $50,000 and $60,000. Interestingly, the psychological resistance now aligns with the previously broken support of the four-month range, underscoring its significance in potentially reclaiming previous momentum. Meanwhile, the psychological support hovers near the 365-day Exponential Moving Average (365-EMA) at $50,589, a crucial annual benchmark. The 30-day EMA presents resistance at $62,695.

Bitcoin’s on-chain metrics, as gathered by Finbold from IntoTheBlock on July 6, reveal additional pivotal levels. The “In/Out of the Money Around Price” metric indicates substantial support slightly below current levels, with significant accumulation seen between $54,810 and $56,478, averaging $55,594. Approximately 747,150 addresses hold over 569,720 BTC at these prices, currently in profitable positions. However, a breach of this level could potentially lead BTC to test support around $48,000.

Conversely, notable resistance levels indicate strong selling interest. The initial barrier lies between $59,885 and $61,553, averaging $60,875, with 1.04 million addresses holding 584,250 BTC. Further resistance levels extend upwards to $65,000.

In summary, the key support and resistance levels for Bitcoin to monitor include $50,000, $55,594, $60,000, $62,700, and $65,000. The prevalence of stronger resistance levels suggests a potential downside breakout. It is crucial to recognize the high volatility of cryptocurrencies and the limitations of technical indicators.

Disclaimer: This content does not constitute investment advice. Investing in cryptocurrencies carries risks, and capital may be at risk.