Bitcoin Slides to $60K Support, But There’s An Enticing Proposition

Summary:
• Bitcoin price has come under pressure from the Middle East geopolitical crisis, but a broader look at the market provides some hope.

Bitcoin price continued with its downward trajectory on Thursday , going down by 0.7 percent to trade at $60,604. Rising war tensions in the Middle East has seen traders tame their risk appetite, reducing the uptake for volatile assets like cryptocurrencies. Bitcoin has lost 8 percent of its value in the last four days, underlining the strong hold by the bears.

A break below the psychological $60,000 mark could deal a blow to Bitcoin’s latest attempt to rally for the first time since the April halving event. However, the US dollar is also in a weak position, and that could provide support for BTCUSD. The US economy printed soft macroeconomic data this week, with mixed PMI figures and a higher-than-expected Initial Jobless Claims figures grabbing the headlines.

The status of the US economy is a double-edged sword for Bitcoin. That’s because its exposure to the mainstream economy is higher this time, compared to the COVID-19 period when it rallied in an economy plummeted by a pandemic. ETF approvals earlier in the year have created a platform where Bitcoin price can be influenced outside cryptocurrency exchanges, unlike in the past.

Bitcoin will likely attempt to hold off breaking below $60k, and could potentially reverse the downtrend if it can head into the weekend above that mark. Otherwise, a breach of that support could clear the way for a potential decline to the sub-$50k territory.

Bitcoin price today

The momentum on Bitcoin price favours the downside, and the sellers will likely be in control if resistance persists at $61,235. In that case, the first support will likely be at $60,462. However, extended control by the bears could result in further losses to break below that level and test $59,850.

On the other hand, the buyers will likely take control if Bitcoin goes above the $61,235 pivot mark. If that happens, the next barrier could come at $61,744, but a stronger upward momentum could break above that level to test $62,370. That will also render the upside narrative invalid.