Bitcoin on the Rise: Reaches $65,000 as US Markets Recover – Will This Level Hold?

Bitcoin on the Rise: Reaches $65,000 as US Markets Recover – Will This Level Hold?

After a turbulent Monday, when markets struggled with a sell-off due to concerns about the impact of artificial intelligence on stocks, the situation began to turn around. On Tuesday, US stocks recovered quickly, which also affected the cryptocurrency market, especially Bitcoin, which rose above the $66,000 mark.

Rapid Recovery of US Stocks and the Impact on Bitcoin

After Monday’s decline, caused by concerns about developments in the AI ​​and software stocks sectors, the major indexes plunged into profit on Tuesday. The Dow Jones recorded a gain of 370 points and the S&P 500 index maintained its growth of around 0.77%. This rapid turnaround in the markets helped to alleviate the negative sentiment for cryptocurrencies, which were able to bounce off the lowest values.

The importance of support levels and analysts’ outlook

According to experts, it is now crucial for Bitcoin to regain and hold the $65,000 level, which is an important psychological and technical level. If the market were to fall below $60,000, it could mean a rapid decline to new lows around $50,000.

Despite a decline of almost 50% from the high, analysts at BTC Material Indicators have seen $4.5 million worth of buy orders from so-called “mega whales”. This phenomenon suggests that large players may view the current levels as an interesting buying opportunity, especially when buying directly into liquidity, which can help break through the current resistance walls.

Long-term perspective and reversal signals

While most signals do not yet point to the beginning of a long-term bearish reversal, it is clear that Bitcoin is now significantly oversold. The weekly RSI (relative strength index) fell to 25.71, the lowest level since July 2022. Historically, such levels have been considered good buying opportunities that signal a market bottom.

Galaxy’s head of research, Alex Thorn, warns that Bitcoin is approaching historical oversold territory, and his words confirm that the market is currently in a very extreme state. Moreover, Bitcoin is now only about 9% from its 200-week exponential moving average (EMA), which is often seen as an indicator of a possible bottom in cycles.

Challenges and uncertainties on the road to recovery

On the other hand, Rekt Capital analyst warns that a confirmed daily close below the 200-EMA could signal the start of another bearish trend. If the market repeatedly tests this level, it could encourage further declines instead of a turnaround.

However, according to Brian Brookshire, another analyst, the process of reaching a bottom could take several months. The future development of the US Federal Reserve's interest rates will also be an important factor, whose actions have the potential to affect the price of BTC.

Conclusion: What awaits us?

Although the current situation is full of uncertainties, it is clear that Bitcoin has made significant movements and the market is now in an extremely oversold phase. If it can be held above the $60,000 level and there is a further recovery in the stock markets, it is possible that Bitcoin may begin a new stage of growth.

On the other hand, it is necessary to be cautious, as technical signals indicate that the upward path may be uncertain and long for now. Investors should monitor key support and resistance levels and be prepared for possible further fluctuations.

*This is not an investment recommendation.

Coingarage Team