Bitcoin breakout above $62k would save it from another “Disappointment”

Bitcoin price is currently approaching a critical resistance level with it needing to reach and break $62,000 to avoid a potential drop to below $60,000 and further down. 

According to market data from TradingView, Bitcoin (BTC) is currently trading near $60,600 while we are approaching the weekend. Over the past few weeks, we have seen that weekly open on Monday usually brings a massive sell-off in the market with BTC price taking huge hits near the $62,000 price mark. 

This resistance level is critical and Bitcoin price hasn't touched the $62,000 mark since August 9. Bitcoin price is hovering near its 200-day exponential moving average (EMA) of $59,500, which is considered a significant indicator due to its emphasis on recent price trends.

While this resistance level has been tested for 5 times and BTC price has failed to break out, this time it is likely to break the range over the weekend. The current market sentiment is also bullish with several crypto traders being confident that Bitcoin is unlikely to fall below $58,000 in near time. The current price trend also indicates a corrective pattern rather than a strong bullish reversal.

Data from CoinGlass shows that a surge to $62,000 would catch many futures traders off guard, potentially wiping out $1.04 billion in short positions.

To prevent a retest of $49,000, Bitcoin must overcome resistance at $62,000. The last time Bitcoin dipped below $50,000 was on August 5, when it hit $49,842, a day dubbed “Crypto Black Monday,” marking its first drop to that level since February.