Over the last 24 hours, Bitcoin (BTC) has attempted to halt the freefall that saw the maiden cryptocurrency lose major support levels.
Although Bitcoin is showing short-term bullishness by regaining the $56,000 resistance zone, crypto analyst Ali Martinez has pointed out that the asset is not yet out of the woods.
In a July 5 post on X (formerly Twitter), Martinez noted that Bitcoin faces a crucial threshold to revive its bullish momentum.
He emphasized that Bitcoin currently lacks robust support, and the asset must close above $61,000 to reignite its upward trend. It’s worth noting that since Bitcoin attained its all-time high of over $73,000, the $60,000 support has been viewed as a crucial level likely to play a key role in pushing BTC towards a new all-time high, with $100,000 remaining the ideal target.
“Bitcoin currently lacks significant support. <…> And for the bull run to resume, $BTC must close and hold above $61,000,” the analyst noted.
The next support to watch
Indeed, Martinez shared data by IntoTheBlock highlighting Bitcoin’s In/Out of the Money Around Price (IOMAP), offering insights into investor sentiment concerning Bitcoin.
The data noted that while Bitcoin was trading around the $54,000 zone, addresses holding the asset between $44,256.50 and $51,841.18 represent approximately 42.86% of total addresses, holding 1.41 million BTC.
Around 11,000 addresses, holding 2.67 thousand BTC (0.08%), are at breakeven between $54,440.20 and $54,920.30. Approximately 57.06% of addresses (about 1.87 million) are at a loss, holding Bitcoin priced between $55,140.18 and $66,973.14.
In this context, the analysis pointed out that $47,000 is the crucial support to watch. Failure to maintain this level could signal further downside risk.
Bitcoin’s sustained bearish pressure
Overall, Bitcoin has faced bearish pressure recently, with analysts pointing to several triggers. For instance, the repayment of Mt. Gox customers is currently considered the main bearish trigger for Bitcoin.
The defunct exchange plans to make approximately $9 billion in repayments, having already transferred 47,229 BTC, leading to panic among market participants.
On the other hand, according to a Finbold report, Bitcoin is caught between two critical psychological thresholds: $50,000 and $60,000. The report highlighted that Bitcoin’s psychological support aligns closely with the 365-day exponential moving average (365-EMA) at $50,589, signifying a significant year-over-year level. Additionally, the 30-day EMA poses resistance at $62,695.
In the meantime, Bitcoin was trading at $56,695 by press time, having gained almost 3% in the last 24 hours. On the weekly timeframe, Bitcoin is down nearly 7%.
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