- Bitcoin hit $67,977 but failed to stay above $66,300, which is a critical level for traders.
- Many traders lost money after the price spike since the market retraced without breaking resistance.
- The market is volatile, and traders are waiting for clear signals before making their next moves.
BTC recently surged to $67,977 and triggered widespread liquidations of inverse short positions. After this, it retracted and led to increased flactuations. Traders who bet against the rise saw their positions wiped out as the economic value remained uncertain as the price hovered below major obstacles.
Key Resistance at $66,300: Can Bitcoin Break Through?
The coin cannot close above the $66,300 threshold, leaving the market in a delicate situation. Analyst Crypto Patel recommends caution and advises traders to wait for a four-hour candle close above this level before considering long positions.
Even with the impressive surge to $67,977, Bitcoin failed to keep momentum beyond the resistance. This continues to act as a barrier. If BTC does not close above $66,300 soon, traders should avoid long positions since the risk of a downturn remains significant.
Short positions still appear valid, as the failure to close above $66,300 supports a bearish outlook. The market may see further downside if this level holds firm.
Bearish Prospects: A Revisit to $62,000–$63,000?
If Bitcoin does not break above the $66,300 resistance, it may return to the $62,000–$63,000 zone. This range acted as an accumulation area before the recent pump, making it a critical level to watch.
Traders should monitor this zone since Bitcoin could retreat to these levels if the resistance remains unbroken. The lack of a breakout above $66,300 increases the likelihood of a return to this range.
Additionally, traders who rushed into long positions without proper confirmation could face more losses. Bitcoin’s price remains vulnerable without clear momentum.
Risk Management and Volatility
The recent spike in BTC's price followed by a rebound as it emphasizes the need for cautious trading. Many shareholders who overleveraged faced substantial losses as the market reversed.
The failure to secure a decisive four-hour candle close above $66,300 reinforces the importance of risk management. Traders are urged to avoid excessive leverage as volatility persists.
With no clear signals of a breakout, traders should remain patient. The market continues to fluctuate, and risk management is crucial as Bitcoin remains open to further price swings.
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