Bitcoin, the leading cryptocurrency, witnessed a price recovery after a dip below $60,000, driven by concerns over large sales volumes and economic data expectations. Investors are eyeing key resistance levels amidst market uncertainties.
Bitcoin, the largest cryptocurrency by market capitalization, experienced a significant price rebound after falling below $60,000 on Monday. At its lowest, the BTC/USD pair hit $58,400, driven by concerns over large sales volumes, including 900 Bitcoins sold by Germany and potential sales from Mt.Gox holdings.
The pair’s recovery saw it climb above $62,000 as investors bought the dip ahead of significant U.S. economic data releases, particularly the Personal Consumption Expenditure (PCE) report expected on Friday.
Earlier this month, Bitcoin had reached a high of $72,000 before falling. The Federal Reserve’s hawkish stance, contrasted with rate cuts by other major central banks, has added pressure on the cryptocurrency.
Technical analysis reveals that Bitcoin formed a double-top pattern at $72,000, a bearish reversal indicator. After breaking below the neckline at $66,285, the price plummeted but has since shown signs of recovery. Currently, Bitcoin trades below the crucial resistance of $65,000 and the 50-period moving average, with the RSI trending upwards.
In the short term, bullish investors are targeting $64,000, while a bearish scenario could see Bitcoin retesting the psychological $60,000 level.
