Bitcoin (BTC) Threatens $61,000 Breakdown as Familiar Trendlines Get Fresh Support Test
Bitcoin (BTC) faced a potential breakdown below $61,000 on May 9 as familiar trendlines were put to the test once again. The cryptocurrency’s price slowly declined, erasing gains from the previous week and putting pressure on key support levels.
The 100-day simple moving average (SMA) and the short-term holder realized price (STH-RP) were back in focus, standing at $61,200 and $60,100, respectively. These levels are crucial for maintaining the bullish momentum in the market, with last week’s dip to $56,500 proving to be only temporary.
Popular trader Skew highlighted the importance of the 100-day SMA and the monthly open at $60,600 on high timeframes, noting the presence of significant bids at these levels. However, there was still a cloud of bid liquidity just below $61,000, indicating a tug-of-war between buyers and sellers.
On the mining front, Bitcoin’s network fundamentals took a hit as mining difficulty was set to drop by 5.5%, the largest adjustment since the end of the 2022 bear market. Despite a drop in hash rate, miners are waiting for the difficulty adjustment to mine more Bitcoin per EH/s.
Overall, the cryptocurrency market remains volatile, with investors closely monitoring key support levels and network fundamentals. As always, it is important for readers to conduct their own research before making any investment decisions.
