Bitcoin breaks through key resistance level, what are the prospects for recovery?
Bitcoin (BTC) recently rebounded more than 14% from a low of $49,000 and successfully regained $57,000. According to the latest report from 10x Research, the $56,000-57,000 area is considered a key resistance level for Bitcoin's recovery. Current market trends show that this resistance level will play a decisive role in Bitcoin's future performance.
Market Overview
The strong rebound in Bitcoin prices indicates that market sentiment has recovered. The general recovery in the crypto market is also reflected in the rise of other major cryptocurrencies, such as Solana (SOL) and Dogecoin (DOGE), which have risen by 11% and 5%, respectively. This has allowed the cumulative market value of cryptocurrencies to re-break through the $2 trillion mark.
10x Research emphasizes that Bitcoin will face strong resistance from the $56,000-57,000 range after breaking through recent support.
Technical indicators show that Bitcoin's monthly indicators have reached historical levels during previous bull market reversals, such as January 2018 and April 2021. This further increases the importance of breaking through the $56,000-57,000 area.
Cryptoquant founder Ki Young Ju said that as long as Bitcoin remains above $45,000, it is still possible to break through the all-time high again in the next year. However, if the price continues to fall for more than a month, it may increase the risk of a bear market.
Currently, the price of Bitcoin has rebounded by more than 4%, striving to regain bullish sentiment. Although the price has fallen by 13% in the past 7 days, the recent rebound shows that the market still has some resilience.
Pay close attention to whether Bitcoin can stabilize above the $56,000-57,000 area. Breaking through this level will provide a strong foundation for future gains. Stop loss setting: In the current market volatility, it is recommended to set the stop loss of long positions at $54,000. Long-term outlook: If Bitcoin remains above $45,000, continue to hold and pay attention to whether it can break through the all-time high.
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