Bitcoin's Price Action Around $61K Could Determine Its Next Move

According to CryptoPotato, Bitcoin's price action around the critical 100-day moving average at $61K could dictate its next decisive move. After a modest bullish rebound from the substantial $59K support level, Bitcoin encountered selling pressure, retracing back to this pivotal juncture. The cryptocurrency has been in an extended sideways consolidation phase near the pivotal $60K price range. A sudden decline below the critical $59K level could trigger another notable downward movement toward the $56K threshold. However, this pivotal juncture also holds the potential to halt further downward pressures and provide mid-term support. Analysis of the 4-hour chart reveals heightened buying pressure near the critical $58K mark, resulting in a bullish surge toward the $66K threshold. However, increased selling pressure around $66K led to a noticeable downtrend, bringing the price back to the crucial $60K support region. Sellers are currently attempting to push the price below the significant $60K support level and the lower boundary of the wedge. If successful, it could signify a more sustained bearish phase, targeting the critical $56K support region. However, Bitcoin may continue consolidating or experience slight lower-level declines before gaining sufficient bullish momentum to initiate a fresh upward trend. Profitability is pivotal in market psychology, particularly when macroeconomic conditions don’t favor risk assets. Therefore, analyzing participants’ profitability offers valuable insights into the market’s state and sentiment. The Supply-in Profit (%) metric, representing the proportion of Bitcoin’s supply-in profit, has recently surged to its highest levels, indicating that many participants may be considering realizing profits, potentially leading to increased selling pressure. Historically, such elevated levels have often preceded market volatility and potential downturns as holders begin to liquidate their positions. However, despite a notable decline in the metric, the price has only undergone slight consolidation, suggesting that the recent decline might be a corrective movement triggered by profit realization. It’s plausible that once the correction stage concludes, the price will likely initiate a fresh, impulsive surge.