Bitcoin Price Update: Bulls Return as BTC Reaches $60K – Will It Hold?

Bitcoin has witnessed a surge in demand close to a critical support level, resulting in a minor recovery above the 200-day moving average set at $59.2K. This recent price movement underscores the potential for a bullish turnaround if the price stabilizes above the 200-day moving average.

Analyzing Bitcoin’s daily chart in detail reveals that following an extended bearish phase, Bitcoin dropped below the 200-day moving average at $59.2K, triggering significant fear and uncertainty in the market. This moving average serves as a crucial support level for Bitcoin, with its breach often indicating a possible bearish trend. However, Bitcoin encountered strong demand around the substantial support area of the 0.5 Fibonacci level ($56K), leading to a modest bullish recovery. The price has now risen back above the 200-day moving average, hinting at a potential bear trap.

Furthermore, a bullish discrepancy between the price and the RSI indicator further suggests the likelihood of a bullish reversal in the short term. Should Bitcoin maintain stability above the 200-day moving average, this could confirm a bullish resurgence in the mid-term, with the next target being the 100-day moving average at $64.6K.

On the 4-hour chart, Bitcoin faced resistance near the multi-month upper boundary at $71K, entering a sustained bearish phase characterized by lower lows and highs. Upon reaching the decisive support level at $56K, the bearish momentum waned, leading to a period of sideways consolidation. Subsequent to this consolidation, an uptick in buying activity triggered a slight bullish rebound.

Bitcoin currently finds itself at a critical resistance zone, encompassing the significant psychological resistance level of $60K and the multi-week downtrend line, where selling pressure could intensify. A successful reclaim of this resistance area may pave the way for a continuation of the bullish trend towards the $65K mark. Conversely, a rejection at this juncture would likely prolong the bearish trend, targeting the crucial $56K support level.

Examining on-chain data focusing on miners’ profitability has emerged as a valuable tool for predicting market bottoms during bear markets and the conclusion of correction phases within bull markets. Delving into this data can offer insights into potential market trends, particularly concerning Bitcoin’s price movements.

Historically, substantial declines in miners’ profitability during bull cycles have often preceded significant price surges for Bitcoin. Noteworthy instances of this phenomenon occurred in 2016 and 2020, where sharp drops in miners’ profitability heralded robust bull markets for Bitcoin. Presently, a similar pattern in miners’ profitability has been identified, signaling a notable decline akin to the movements witnessed during the 2016 and 2020 bull cycles. This suggests that while the exact conclusion of the ongoing correction period remains uncertain, the shift to a bull market may be on the horizon.