Why $66K Level Is Important To BTC

Bitcoin (BTC) price tapped fresh liquidity from its weekly support but gave it up on two accounts as it closed in on the $62,000 level. The largest cryptocurrency highlights a 1.5% increase on the day on top of a 3.5% surge in seven days. Altcoin majors moved selectively, with Ethereum (ETH) upholding a bullish outlook along with Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK).

BTC Price Market Movers: Short-Term Holders’ Costs and Consistent BTC ETF Inflows

Bitcoin price has failed on multiple attempts to crack resistance at $62,000, and the most crucial range is between $64,000 and $66,000. According to CryptoQuant blockchain data and insights, short-term holders are investors holding BTC in their wallets for not more than 155 days.

The chart below shows that investors who have HODLed BTC for one to three months currently have an average cost basis of $64,206, while those who have held BTC for three to six months have an average cost of $65,898. With that in mind, the range from $64,000 to $66,000 is a solid resistance in the BTC price recovery path.

On the bright side, as short-term holders close their losses and ascend into profit, Bitcoin will likely become attractive to new investors, shaping the next bull run above $70,000.

Bitcoin ETFs have, in the last few days, experienced net inflows, with the latest $39.42 million recorded on August 21, as per SoSoValue data. In the last five business days, net inflows have been consistent and totaled $236.58 million. This implies that investors are regaining confidence, and willing to bet on Bitcoin price rallying above $70,000 and even to new ATH.

Bitcoin Price Analysis: Nurturing Triangle Breakout

The ongoing recovery started after Bitcoin price collected liquidity from $58,000 support earlier this week. This action coincided with reinforcing a buy signal from the Moving Average Convergence Divergence (MACD).

Although BTC had corrected to exchange at $60,560 at the time of writing, chances were still higher for an ascending triangle breakout. This pattern formed as bulls tried to recover from the flash crash to below $50,000, but an immense supply of $61,500 and $62,000 hindered the uptrend from reaching higher.

The prevailing market conditions generally favor a bullish outcome, which means, with a stronger push, Bitcoin may finally break free to attack the earlier-mentioned range between $64,000 and $66,000. Traders should look for a break above the X-axis for a 13% breakout to $69,700. A stop loss will be placed below the resistance level for risk management.

A previous BTC price prediction shows that Bitcoin is not out of the woods yet, and a swing low to $58,000 support is still on the cards. If the MACD confirms a sell signal, more traders will consider switching to short BTC. An increase in selling volume could see BTC implode below the trend line and support at $58,000, aiming for $56,000.

✓ Share:

John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.