Bitcoin price rebounded by over 14% from the lower lows of $49,000 as the global digital asset market saw a broad market recovery. US recession fears and potential Federal Reserve actions mostly drove the BTC price dip below $50K. A 10x Research suggests that the $56k-$57k zone will play a crucial role in Bitcoin’s recovery ahead.
BTC reclaimed the crucial $57,000 level on Wednesday depicting returning investors’ confidence in the market. The cumulative crypto market cap regained the $2 trillion mark as top cryptos like Solana (SOL) and Dogecoin (DOGE) jumped 11% and 5%, respectively, in the last 24 hours.
Bitcoin needs to break key resistance levels
The latest report by 10x Research highlighted that Bitcoin is trying to recover but the strong resistance from the downtrend could act as a challenge after breaking recent support. Its outlook is based on monthly technical indicators which have reached historic levels seen in previous bull markets reversed, such as in January 2018 and April 2021.
It added that from a technical perspective, the $56,00-$57,000 range is anticipated to serve as strong resistance for Bitcoin. A close above this level would give a positive sign for the industry. However, it is crucial to maintain stop-losses at $54,000 for long positions given the prevailing downside risk indicated by technical indicators.
Ki Young Ju, founder of Cryptoquant, suggested that Bitcoin is still in the position to break ATH again within a year as long as it stays above $45K. He added that some indicators are showing bearish signals but it could still recover with a rebound.
He mentioned for market participants to watch if BTC maintains this level for a week or two. However, the longer it lingers, the higher the risk of a bear market. He also asserted that recovery may be difficult if it lasts over a month.
BTC reclaims 4% in price gains
The cryptocurrency continues to make its recovery from the downside effects caused by US recession fears and potential Federal Reserve actions. Bitcoin price jumped by more than 4% in the last 24 hours in an attempt to regain the bullish sentiments. It has endured a drop of 13% in the last 7 days. As of press time, BTC is trading at an average price of $57,480. It is now down by 22% from its all-time high of $73,750, recorded on March 14, 2024.
Coinglass data shows that around $50 million worth of positions set by traders on Bitcoin price performance got liquidated in the last 24 hours. More than $30 million worth of liquidated bets (61%) turned out to be short positions. This indicates that traders were hoping for a BTC price decline after the recent rebound, but the cryptocurrency managed to hold the line.
