MicroStrategy’s recent billion-dollar investment in Bitcoin (BTC), the world’s biggest cryptocurrency has turned the market sentiment to bullish. With this investment, BTC has reached its crucial resistance level of $60,000 and is just one step away from a significant rally.
According to expert technical analysis, Bitcoin appears bullish as it is currently trading above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator that signals whether the asset is in an uptrend or a downtrend.
Despite being in an uptrend, Bitcoin is currently facing strong resistance at the $60,000 level. If BTC closes a daily candle above the $60,000 level, there is a high possibility it could experience a price surge of almost 11% to the $65,000 to its next resistance.
This bullish outlook is further backed by the on-chain metrics. Coinglass’s Long/Short ratio currently stands at 1.0446 indicating traders’ bullish market sentiment. At present 51.09% of top BTC traders hold long positions, while 48.91% hold short positions.
Additionally, BTC’s future open interest has increased by 2.03% and has been steadily rising since September 9, 2024. This increasing open interest indicates that bulls are placing more bids on long positions in the hope that Bitcoin may breach the resistance level.
As of now, the major liquidation levels are near $58,717 on the lower side and $60,100 on the upper side. According to Coinglass data, traders are over-leveraged at these levels.
As of writing, Bitcoin is trading near the $59,800 level and has experienced a price surge of over 3.1% in the last 24 hours. The major price surge in BTC occurred following MicroStrategy’s buying announcement.
According to the coinmarketcap, BTC’s trading volume has declined by 4.5% during the same period. It appears that traders and investors still hesitating to participate, potentially due to the $60,000 strong resistance.
However, this bullish thesis will only hold if the BTC daily candle closes above the $60,000 level, otherwise, it may fail.
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