The leading cryptocurrency, Bitcoin, has gained strong momentum in recent days and climbed above $66,000. In this context, BTC has returned to its highest level in over a month, and whether the uptrend will continue seems to depend on breaking through a critical resistance level very close by.
At this point, Bitfinex analysts stated in their weekly report that the key resistance area that will determine whether the uptrend can continue is around $68,000.
Analysts say this level is critical for BTC, as it roughly corresponds to the average purchase price of Bitcoin bought by investors over the last five months.
At this point, analysts said that investors who are at a loss might see the return to the break-even point of $68,000 as a selling opportunity, which could create selling pressure.
According to Bitfinex, the $68,000 region also coincides with the previous peak in mid-June, when Bitcoin’s recovery stalled and it fell below $58,000. In this context, analysts state that the market will show a strong reaction to this resistance zone being retested for the first time in a long time.
According to analysts, a sustainable breakout above the resistance zone requires sustained buying in the spot market rather than speculative activity. Otherwise, BTC may once again face rejection at this level and retest the lower support levels formed during the recent recovery.
“…the next test is approaching with the short-term investor cost floor and other key resistance levels converging around $68,000. A sustained move above this range, supported by strong spot demand, would strengthen the recovery scenario, while rejection could expose the market to another test of its recent lows.”
Bitfinex recently stated that it is seeing signs of a gradual improvement in market conditions. It cited as an example a shift in US spot Bitcoin ETFs from sustained outflows to modest inflows.
However, overall demand, including purchases by institutional Bitcoin treasury companies like Strategy, remains well below the levels seen earlier this year. This means the recovery hasn’t fully begun yet.
*This is not investment advice.
