Bitcoin Tests Key Resistance at $60K as Analysts Predict New All-Time High

Key Takeaways:

• Bitcoin's price is trading 16% above its local low, indicating a bullish trajectory.
• Analysts predict a breach of the $65K resistance could push Bitcoin to new all-time highs.
• Bitcoin futures premium indicates cautious sentiment among traders despite the recent price rally.

Bitcoin has rebounded significantly from its September 6 low of $52,546, now trading 16% higher. This price movement has led analysts to believe that the cryptocurrency is on a bullish path, potentially reaching new all-time highs.

Analysts Point to Bullish Market Setup 

Independent Bitcoin analyst Jelle revealed that Bitcoin’s market structure has shifted back to bullish territory after closing higher than the previous September high and locking in a higher low. 

This shift was confirmed in Jelle's recent analysis on X (formerly Twitter), citing Bitcoin’s recent high of $61,270 on September 13, which surpassed the $59,830 level set on September 3. 

Local structure turned back to bull here — after closing higher than the previous September high, and locking in a higher low as well.

Looks ripe to take out $65,000 — and then new all time highs.#Bitcoin pic.twitter.com/r6elnqXiWq

— Jelle (@CryptoJelleNL) September 17, 2024

As Jelle explained, this higher setup suggests the Bitcoin price may overcome the key $65,000 resistance and move toward testing all-time highs. This view is supported by Pseudonymous crypto analyst Altstein Trader, who argues that a break above $65,000 could set the stage for a new ATH. 

The local bullish shift looks promising

Breaking that $65,000 mark could set the stage for new all-time highs

What are your thoughts on potential resistance levels before we hit those new highs?

— 💎ALTSTEIN TRADE💎 (@Altsteinn) September 17, 2024

Resistance at $60,000 Becomes a Key Hurdle 

Bitcoin is trading near a critical resistance zone of $60,000, with several indicators suggesting this level is pivotal. Popular analyst Daan Crypto Trades observed Bitcoin's price hovering around $57,902 near the middle boundary of a descending parallel channel. 

According to Daan, breaking above this level could trigger a significant move higher. “A 5% move above this point would set the stage for a 10% move upward, pushing Bitcoin above $66,000,” he explained.

Recent data from TradingView shows that Bitcoin rose above key moving averages – the 50-day, 100-day, and 200-day exponential moving averages – around $60,738 on September 18, briefly hitting an intraday high of $61,331 before retracing to $60,540.

Key Indicators Suggest Investor Caution 

Despite the bullish price action, analysts are urging caution. Data from IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model indicates strong resistance at $60,000, where approximately 604,760 BTC were bought by around 1.53 million addresses. 

This data highlights the significance of this level in Bitcoin’s price dynamics.

Moreover, futures market data from CoinGlass revealed massive ask orders building up around the $60,000 mark, further indicating that this level is a critical hurdle for Bitcoin bulls to overcome.

The BTC futures premium, a measure of market sentiment, remained stable at 6% as of September 16, indicating cautious optimism among traders. 

In a neutral market, Bitcoin futures typically trade at a 5% to 10% annualized premium to account for extended settlement periods. 

Although Bitcoin has rallied from $57,675 to $61,330, sentiment remains cautious. Traders are hesitant to commit until $61,000 flips into a support level.

Can Bitcoin Sustain Its Momentum? 

For Bitcoin’s bullish momentum to continue, it must solidify $61,000 as a support level. 

While the price action looks promising, resistance levels around $60,000 to $62,278 remain a significant hurdle. 

If Bitcoin breaks through this range, analysts predict that the next challenge will be overcoming the psychological $65,000 barrier, potentially setting the stage for new all-time highs.

For now, investors remain watchful, balancing short-term bullish setups with the broader market's cautious sentiment.