Here’s Why Surpassing $61K is Crucial

Bitcoin’s market has been in a holding pattern, lacking the excitement seen in previous months. Nonetheless, all eyes are on the $61K level, a value that may revive the consumers’ interest in Bitcoin and the possibility of a potential breakout. The current price stagnation often signals a precursor to massive market movements, making this threshold more crucial than ever.

Analysts Forecasts BTC’s Price Action

Market analyst Michael van de Poppe recently used the term ‘dull’ on Bitcoin, which he mentioned usually comes before significant price action in the market. To this end, he stressed that the price of BTC should rise above the $61K mark to change the tide.

“You’d really need to get a breakout above $61K to get the momentum back in the markets, otherwise, we continue to have this downward trend for a while.”

Assuming the asset does regain this level, Van de Poppe’s chart suggests a substantial move toward the next major resistance at $71,679. Conversely, a contrary scenario could see Bitcoin lead to extended downward pressure in the market for a while.

Dull market, which is usually the end stage before the party begins.

Regarding price action on $BTC:

You’d really need to get a breakout above $61K to get the momentum back in the markets, otherwise, we continue to have this downward trend for a while. pic.twitter.com/K9s9V0SKyc

— Michaël van de Poppe (@CryptoMichNL) September 2, 2024

The analyst’s analysis further identifies a critical support zone of around $56,000, demonstrating resilience in recent sessions. This suggests that this area is essential for sustaining any upward movement in Bitcoin’s price.

Should BTC fail to maintain its position above this support, it may become vulnerable to a decline towards the next major support level of around $50,521. Additionally, there is potential to retest the hypothetical $48,969 threshold if downward momentum persists.

Also Read: Growing Address Poisoning Attacks: How Ethereum User Lost $48k

On-Chain Data Signal BTC’s Price Rebound

Despite market uncertainty, on-chain data signals point to a potential price rebound for Bitcoin. In a recent X post, Santiment highlighted that Bitcoin is beginning to show signs of recovery, particularly as the S&P 500 pauses for Labor Day.

Decoupling from traditional equity markets suggests that the cryptocurrency sector may be gaining independent strength. Moreover, the growing bearish sentiment among traders, coupled with the increase in Fear, Uncertainty, and Doubt (FUD) surrounding Bitcoin, could indicate an imminent price rebound.

📊 Bitcoin has shown signs of life as the S&P 500 is paused for Labor Day. Signs of crypto growth without reliance on equities is a promising hint of the sector’s strength. Combined with growing trader bearishness and FUD, there are promising signs an upcoming rebound is near. pic.twitter.com/d3ykTTSHY0

— Santiment (@santimentfeed) September 2, 2024

Historically, such highly negative crowd sentiment has often preceded a bounce, offering a potentially bullish outlook for Bitcoin holders. As of press time, BTC exchanges hands at $58,385, a 0.45% increase in the last 24 hours.

Following this slight uptick, the asset’s market cap has been impacted slightly, surging to the $1.153 trillion threshold. Moreover, its 24-hour trading volume soared by 35.59% to $27,761,739,395.

Also Read: Bitcoin May Find Support at $54K—Will BTC Drop Further?