MicroStrategy’s recent billion-dollar investment in Bitcoin (BTC), the world’s largest cryptocurrency, has significantly shifted market sentiment towards a bullish outlook. This substantial investment has propelled BTC to its critical resistance level of $60,000, positioning it just a step away from a major rally.
Bitcoin Technical Analysis and Upcoming Levels
Expert technical analysis indicates that Bitcoin is exhibiting a bullish trend as it currently trades above the 200 Exponential Moving Average (EMA) on a daily timeframe. The 200 EMA is a crucial technical indicator that helps identify whether an asset is in an uptrend or a downtrend.
Despite this uptrend, Bitcoin is encountering strong resistance at the $60,000 level. Should BTC close a daily candle above this level, there is a high likelihood of a price surge of nearly 11%, potentially reaching the next resistance at $65,000.
Bullish On-Chain Metrics
The bullish sentiment is further reinforced by on-chain metrics. According to Coinglass, the Long/Short ratio stands at 1.0446, reflecting traders’ optimistic market perspective. Currently, 51.09% of top BTC traders hold long positions, while 48.91% are positioned short.
Moreover, BTC’s future open interest has seen an uptick of 2.03%, continually rising since September 9, 2024. This growing open interest suggests that bulls are increasingly placing bids on long positions, anticipating that Bitcoin may surpass the current resistance level.
Major Liquidation Level
At present, the major liquidation levels are positioned near $58,717 on the lower side and $60,100 on the upper side. As per Coinglass data, traders are significantly over-leveraged at these levels.
As of this writing, Bitcoin is trading around the $59,800 mark, marking a price increase of over 3.1% in the last 24 hours. This significant uptick in BTC’s price followed the announcement of MicroStrategy’s recent acquisition.
According to CoinMarketCap, BTC’s trading volume has decreased by 4.5% over the same period. This decline suggests that traders and investors remain hesitant to engage, likely due to the formidable $60,000 resistance level.
However, this bullish scenario will only hold if BTC manages to close a daily candle above the $60,000 threshold; otherwise, the bullish momentum may falter.
