Bitcoin (BTC) Ascends Beyond Crucial $61K Threshold, Will the Market Maintain Momentum?

Bitcoin (BTC) has exhibited considerable strength over the past 24 hours, decisively surmounting a formidable daily resistance level. This upward surge saw Bitcoin escalate from approximately $60,800 to a zenith of $61,386.78, marking a pivotal breakthrough above the $61,000 threshold that had previously capped any upward movement.

Such breaches are typically bullish indicators in the market, signifying heightened buy-side pressure. Traders and investors are now recalibrating their strategies to align with this newfound momentum.

Despite the bullish price movement, trading volume has significantly dropped by around 40.47% in the same period. This decrease in volume may indicate a lack of strong conviction in the breakout, as higher volumes are typically favored for the sustainability of new price levels.

Meanwhile, the market cap has shown a slight increase, rising to approximately $1.21 trillion along with the price. However, the volume ratio to market cap has decreased, suggesting that the price increase was not supported by proportional liquidity.

BTC/USD Technical Analysis

On the 4-hour Bitcoin chart, the Moving Average Convergence Divergence (MACD) indicator is displaying a subtle bullish signal, hinting at a reversal or a deceleration of the recent downtrend.

The MACD line has just crossed above the signal line, a classic bullish crossover that suggests further upward momentum. Additionally, the histogram, which illustrates the difference between the MACD line and the signal line, has just turned positive above the baseline for the first time after a period of deep negatives. This development indicates rising bullish momentum, reinforcing the strength of the crossover signal.

In contrast, the Bull Bear Power (BBP) oscillator, which gauges bear versus bull strength by comparing daily lows to the 13-period exponential moving average (EMA), has predominantly posted negative readings for BTC, indicating that bears currently have the upper hand.

A recent uptick toward the zero line suggests that bearish power is weakening, potentially giving bulls an opportunity to take control. The decreasing bearish values of the BBP, along with its move toward the baseline, hint at a possible shift in momentum.

Meanwhile, the Relative Strength Index (RSI) is at 52.53, indicating a neutral stance, with no overbought or oversold conditions. While this might suggest that the market will soon stabilize, it also leaves room for BTC prices to move in either direction.

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