The potential for Bitcoin to reclaim above the $69,000 mark this week is crucial in confirming the robustness of the broader crypto market, according to an analyst.
The bearish performance of the U.S. equity market and the strengthening of the U.S. dollar have recently wreaked havoc on the price actions of crypto assets.
In particular, Bitcoin (BTC) has been down 1.28% in the past day, contributing to an overall negative trend in its seven-day performance. This has resulted in a decline across the broader crypto market, with the total valuation plunging by 1.28% to $2.31 trillion.
With Bitcoin price hovering near the $66,000 level, the premier asset is currently at a crucial point that could impact its next movement.
Several market watchers are observing Bitcoin’s behavior around its current position. Some of the analyses have focused on Bitcoin’s short-term exponential moving averages (EMAs).
Bitcoin Needs to Higher High Above $69K This Week
Specifically, Skew, a widely followed Bitcoin analyst, suggested that BTC needs to establish a higher high above the $69,000 price level by this week. According to the expert, this potential spike would validate the strength of the ongoing bullish trend in the market.
Meanwhile, the analyst identified the $66,500 price level as Bitcoin’s primary defense line. A decline below this mark could activate the second support at $65,000. If these supports fail to hold, Bitcoin’s price could crash to $61,065, which serves as a pivotal control point.
BTC Shows Strength Against Strong USD
In the meantime, several macroeconomic factors, such as increasing inflation markers, declining U.S. equities, rising U.S. dollars (USD), political uncertainty, and concerns about the United States’ financial policies, have been impacting Bitcoin’s price actions lately.
Interestingly, the premier crypto asset has displayed resilience against the USD, whose index (DXY) rose 3.4% month-to-date (MTD).
Typically, such a surge weakens crypto prices. However, Bitcoin has shown resilience against the U.S. fiat currency, with its 5% MTD gain.
Bitcoin’s Next Move?
Meanwhile, market watchers are closely monitoring Bitcoin’s price for the remainder of the week as the asset hovers around crucial levels.
Bitcoin bulls hope BTC will remain above the $66,500 support level to bolster its chances of breaching the $70,000 resistance this week.
Conversely, bears will aim for further declines that could push Bitcoin to support levels of $65,000 or $61,065. Currently priced at $67,053, Bitcoin is down 9.44% from its all-time high of $73,750, registered on March 14, 2024.
