Bitcoin’s struggle to retest a key resistance level at $60,000 has “dampened” market sentiment, said one trader.
The oldest cryptocurrency is looking at a price support level around $54,000, with resistance around $60,000.
Bitcoin traders are increasing their bullish bets in futures markets – and taking more risk.
As altcoins rise, bitcoin’s market dominance is down to around 57% from near 73% at the beginning of the year.
$60K is a key psychological level that has also proven a formidable stopping point during this year’s powerful rally.
The quick recovery to near $58,000 demonstrates stronger confidence from investors in the oldest and largest cryptocurrency.
After two days of sell-offs, bitcoin bulls finally returned.
“This is a time to make sure that you have some dry powder and are not overextended,” said one trader.
Tesla got the market excited briefly, but bitcoin is still in consolidation mode.
“The market is not as confident anymore,” say Arcane Research. “More traders are positioned short.”