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Bitcoin Price Reaches $66,300 Resistance But Will BTC Break it?

Last Updated May 17, 2024 1:13 PM
Nikola Lazic
Last Updated May 17, 2024 1:13 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Bitcoin recovers to reach its previous resistance at $66,300.
  • Negative Bitcoin Netflow hints there might be a bullish sentiment around the coin.
  • The market is calm, but there is a possible uptrend that could see BTC reach new heights.

Bitcoin is once again at $66,300, a level reached on May 15 when the price of BTC spiked by nearly 8%. After that, we saw a minor rejection, leading the price to $64,500 the next day. Now, it has made a recovery and is putting pressure on the area, which raises the question – will it continue past it? 

Bitcoin Fundamentals 

According to Cryptoquant data , Bitcoin’s Netflow on May 15 was negative 22,350, the lowest since December last year. This resulted in a price spike, which led to a resistance level of $66,300. 

Bitcoin
Bitcoin Netflow | Source: CryptoQuant


This usually indicates that investors are withdrawing Bitcoin from exchanges to hold BTC for longer periods, implying a bullish market sentiment. Even though we’ve seen one, it doesn’t have to correlate with an immediate price increase. It often provides a bullish outlook for later on. 

Regarding profitability , most investors are profitable, with only 6.92% of tracked addresses being “at” and “out of the money”.  

 

Bitcoin
In/Out of Money | Source: IntoTheBlock

This one-sidedness usually indicates an overconfident sentiment and usually leads to reversals. When there is no one else to buy, the price usually stagnates for periods until the first selling begins. On March 7, we saw 100% of addresses being in profit when the price of Bitcoin was $65,000, after which the price made it to a new all-time high. However, it was sent back below $61,000 shortly after on March 20. 

Bitcoin
Liquidations data | Source: CoinGlass

The derivatives market is relatively calm. According to CoinGlass data , there weren’t many liquidations on the buyers’ and sellers’ sides. On May 15, when Bitcoin spiked to $66,300, there was a notable increase in short positions being liquidated, but in comparison to the other dates, we cannot say it was a short squeeze. 

This leads us to believe that the previous rise was due to actually exchange purchases, most likely from the short-term holders and traders. 

Bitcoin (BTC) Price Analysis 

Since its all-time high of nearly $74,000, the price of Bitcoin has formed a descending channel. May 17’s rise is the second interaction with its resistance level, and two scenarios are likely to occur. 

Bitcoin
BTCUSD Coinbase | Credit: Nikola Lazic/Tradingview

If this descending channel ended its corrective stage on May 1, when the price dipped to $56,600, the price started an uptrend, and we will see a breakout above. In this case, Bitcoin would be headed to a new all-time high with targets above $80,000. 

Alternatively, the correction didn’t end and has two more moves. According to this scenario, we will see a rejection, leading to another retest of the descending support level, with the price target set at $56,000. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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