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  • Zameer Attar
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    Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.

    • 2 minutes read

    Bitcoin Price Recovers! Key Levels to Watch as BTC Eyes $58,000

    Story Highlights
    • BTC has experienced a breakout from a descending trendline and is now heading toward a resistance level of $58,000.

    • BTC's price could soar another 10% to the $62,000 level if it breaks out the $58,000 level.

    • Coinglassโ€™s BTC Long/Short ratio currently stands near 1.095, which is a bullish signal.

    Bitcoin (BTC), the largest cryptocurrency by market cap, is showing signs of bouncing back after hitting a monthly low of $55,500. While BTC recently saw a drop of over 10%, it has climbed more than 5% in the past three days, suggesting a potential price reversal.

    What’s fueling this uptrend? Are brighter days ahead? Read on for the answers to all your questions.

    Bitcoin Price Reversal 

    With the recent price surge, BTC has broken out from a descending trendline and is now approaching a significant resistance level at $58,000.

    At the time of writing, BTC is trading near $56,740, reflecting a 4.5% increase in the last 24 hours. This surge has sparked renewed interest among traders and investors, with trading volume jumping by 86% during the same period.

    Bitcoin Technical Analysis

    Despite trading below the 200 Exponential Moving Average (EMA) on both the four-hour and daily charts, BTCโ€™s outlook appears positive. The recent price jump came after a bullish divergence was spotted on the Relative Strength Index (RSI) on the daily chart, indicating potential further gains.

    Based on past price movements, BTC could climb another 10%, potentially reaching the $62,000 level in the near future.

    What On-Chain Data Reveals

    In addition to technical indicators, on-chain metrics also support the bullish sentiment. Coinglass data shows BTCโ€™s Long/Short ratio is around 1.095, indicating that traders are leaning bullish (a ratio above 1 suggests a preference for long positions). BTC’s futures open interest has also increased by 6% in the last 24 hours, a sign that traders are building long/short positions.

    Watch These Liquidation Levels

    The main liquidation zones are around $55,900 on the downside and $57,000 on the upside, with traders at these levels over-leveraged, according to Coinglass data. If BTC reaches $57,000, around $71 million worth of long positions could be liquidated.

    On the other hand, if the price falls to $55,900, approximately $91.2 million worth of long positions may be at risk.

    Currently, the bulls seem to be in control and could continue to drive the liquidation of short positions in the coming days. As BTC approaches these critical levels, traders will be watching closely to see if the cryptocurrency can maintain its upward momentum or if the bears will push back.

    Read Also: South Korean Customs Link Rising Drug Smuggling to Crypto and Telegram

    How has the recent price movement affected your strategy? Let’s hear from you!

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