Bitcoin Price Breaks Above $66K – Has BTC Reversed The Break Again?
Bitcoin (BTC) price has broken above the crucial $66,000 mark, suggesting that price action may turn into a bullish two days after Bitcoin's halving.
Bitcoin breaks above $66,000.
Bitcoin regained the $66,000 mark on April 22, which may lead to a change in market sentiment, which may lead to the end of the current price correction, according to Christian Haralampiev, whose structured products are led by Nexo. He told Cointelegraph.
“Traditional financial markets opened relaxed on the back of tensions in the Middle East, with risk assets rising and gold opening lower. The increase in open interest across all derivatives, coupled with higher consumption levels and positions in the options markets suggests that a rally may be underway.
Bitcoin retrieving the $66,600 mark on the four-hour chart could signal a reversal of BTC's price to the bulgarian, according to popular crypto analyst Trader Alan X, who posted on April 22:
“This breakdown is from a “high low to resistance” pattern and [relative strength index] RSI simultaneous loss. This tells us that purchasing power has developed and a strong LTF bottom has formed. This leads to more bull runs.
As the price of Bitcoin broke above the crucial weekly close of $66,600, it is acting as a major resistance level for BTC, according to the famous analyst Rect Capital, who posted on April 22 X:
“Bitcoin is currently trying to make this recovery. A successful recovery here would allow BTC to go to $67,150, which would be the next recovery BTC would need to succeed for price to revisit $69,000 in the green.”
Reset the Bitcoin MVRV-Z metric
Following last week's correction, Bitcoin's MVRV Z-score, a technical indicator used to assess whether an asset is overbought or oversold, saw a healthy correction, falling to 2.08 on April 17, indicating that Bitcoin is no longer overbought, according to LookIntoBitcoin.
According to Phillip Swift, founder of LookIntoBitcoin, who wrote in an April 22 X post, the indicator points to a healthy uptrend in line with previous bull cycles.
“Bitcoin MVRV Z-Score again pauses mid-cycle between 2 and 3. Last month's cooling is very healthy and similar to previous cycles.”
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BTC must return $69K to ensure the split.
Despite this week's positive price action, according to Jag Kooner, Head of Derivatives at Bitfinex, it is too early to confirm the end of the current correction due to the reduced market depth, which may cause additional price volatility. He told Cointelegraph.
As we move out of our lower timeframe, it's important to remember that the market's depth is significantly less than it was a few weeks ago, with over $2 billion in massive liquidation events in the 2 days since April 12th. This means there is lower open demand and fewer spot orders, so it's easier to move the market for smaller orders.
Conner expressed optimism about Bitcoin's price action in the short term, but warned of further liquidity as leverage begins to re-enter the markets.
In order to head to a decisive new high, Bitcoin must first overcome the $69,000 mark, according to Nexo's Haralampiev:
“Key levels to confirm bullish sentiment and price action are in the $69,000 – $70,000 bracket. Eventually, price action above these levels could prompt BTC to attempt a breakout higher, if market sentiment and positioning continue to strengthen.”
Bitcoin is facing strong resistance at the $67,000 mark, with more than $553 million worth of short-term potential on all exchanges.
A potential move above the $69,000 mark would eliminate more than $1.12 billion worth of short positions, Coinglass data shows.
Related: Top Five BTC Miners Not Selling Despite Bitcoin Halving
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
