Bitcoin Recovery Path To $60,000: Analyst Reveals Why $55,881 Is Important

Scott Matherson

Last Updated: September 11, 2024 1:00 pm

3 mins read

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The Bitcoin recovery at the beginning of the week has been a welcome development, especially given the incredibly bearish movements of the last month. However, even with the price on the up and up, there is still some danger lurking around that could stop the rally dead in its tracks. So, it has become important for the BTC price to hold some important levels if the rally is to continue, and one crypto analyst has identified one of the major support levels for this.

Bitcoin Must Hold $55,881

Crypto analyst Rekt Capital took to X (formerly Twitter) to inform his 500,000 followers of what is ahead for the Bitcoin price. According to the crypto analyst, the bitcoin price has been able to protect an important level so far and that is the bargain-buying area.

This bargain-buying area that Rekt Capital is referring to is the $53,250 level, one to which Bitcoin has held up quite nicely. Despite the breakdown, the fact that this level held shows strength for the digital asset. But even with this, the pioneer cryptocurrency still has a long way to go.

As the crypto analyst explains, the fact that the Bitcoin price held the bargain-buying area happened beneath the black Downtrending Channel. This means that bulls would have to hold up momentum to continue the rally, and the best way to do this is to reclaim and hold the $55,881 level as support.

#BTC

The good news is that Bitcoin has Weekly Close above ~$53250 to protect the very bottom of the bargain-buying area (orange) that has formed beneath the black Downtrending Channel

To build on this momentum, Bitcoin would need to next reclaim $55881 (blue) as support to try… https://t.co/pSYJZpk8E3 pic.twitter.com/Y3wPkLouRH

— Rekt Capital (@rektcapital) September 9, 2024

If this support holds, then the crypto analyst forecasts a possible continuation of the rally. But not just any continuation, one that would drive the price above $60,000 once again. In this case, Bitcoin could be set on a path to a brand-new all-time high.

BTC Hitting A Bottom

It seems that sentiment is starting to recover as crypto analysts are predicting a rally for the Bitcoin price. Another analyst known as Cousin Crypto on X has pointed out that the BTC price might reach its bottom soon, giving a couple of reasons for this.

For one, the crypto analyst points out that the BTC price has marked its first higher low in 200 days. Next, the potential Fed rate cuts that could happen next week could help strengthen the Bitcoin price. Third on the list is that the market is still sitting in Extreme Fear, which usually marks market bottoms.

Given all of these, the analyst believes that there are bottom signals flashing for the Bitcoin price. In line with Rekt Capital’s analysis, if the Bitcoin price does bottom, then the next leg-up could put the price above $60,000 quickly.

Bitcoin price chart from Tradingview.com — BTC price drops to $56,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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