Bitcoin faces rejection at key resistance, with $66,000 as the breakout point.
- BTC needs to break $66,000 for a bullish run. $5.64 billion in realized profits signal strong market activity.
Bitcoin [BTC] continues to struggle within a descending parallel channel. From optimism a few days ago, it seems that a breakout is nowhere in sight.
After rejection at the upper boundary, BTC could be on its way to lower levels unless it clears one key price level.
THIS signals more bearish run
BTC’s latest price met a resistance and was rejected from the upper boundary of the descending parallel channel at 66K.
The rejection at the upper boundary brings the middle boundary of the channel into view, which lies at $58,000, or even the lower boundary at $52,000 for the worst.
Source: TradingView
Market participants looking for a breakout in the direction of the bulls will need to see BTC close above $66,000—a price resistance level that has proved to be formidable.
Realized profits boost market activity
The Bitcoin market is still so active. Judging by the performance of the last 24 hours alone, the recorded $5.64 billion in realized profits was a key indicator of large-scale profit-taking.
The uptick indicates that investors are cashing in, probably creating downward pressure in the near future.
Source: X
Bitcoin social sentiment spikes
Adding to the aforementioned metrics, social sentiment around BTC has also exploded in recent times, according to Santiment data.
Much of the buzz could be due to fresh speculations over Satoshi Nakamoto, the mysterious creator of Bitcoin.
While a jump in Bitcoin social sentiment could fuel short-term volatility, the chances of holding up a prolonged price increase without first breaking above $66,000 are minimal.
Source: Santiment
While the realized profits and the social sentiment indicate a buzzing market, the technical outlook for BTC remains unclear. The $66,000 mark is the key level to watch for a breakout.
Until then, market participants should prepare for potential dips to $58,000 or even $52,000.
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