Is Bitcoin Building Up Support Near $60,000?

Bitcoin prices have been trading close to $60,000 lately, fluctuating near this key, psychological level as the cryptocurrency markets benefit from a steady supply of bullish news developments.

Lately, the world’s most prominent digital currency has repeatedly tested the $60,000 level, rising to intraday highs of $59,379.99 and $59,835.39 on March 30 and 31, respectively, CoinDesk data shows.

Yesterday, the cryptocurrency reached $60,101.75, but quickly pulled back from this level, experiencing a rather modest decline, additional CoinDesk figures reveal.

At the time of this writing, bitcoin was trading near $59,200, having fallen slightly from yesterday’s recent high, but was still within a few percentage points of the $60,000 level.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

With these market conditions in mind, market experts offered some technical analysis for the world’s most valuable digital currency.

“Bitcoin has been testing $60,000 and is eventually going to break through,” said William Noble, chief technical analyst for cryptocurrency data provider Token Metrics.

“There is a lot of institutional news and interest lately so $60,000 is just another round number that bitcoin will move past,” he added.

“After that, I think $80,000 is going to be the near term target,” Noble predicted.

Tim Enneking, managing director of Digital Capital Management, also provided some input on the matter.

“Bitcoin is clearly preparing for a serious assault on levels above $60k,” he noted.

“And there has been a surprisingly consistent pattern to that assault: rapid move up of $1.5-$2k (first on March 27 and, with one exception, daily thereafter), followed by a ‘slow leak’ of $1-1.5k and then another rapid move up,” said Enneking.

“We are now in the sixth iteration of the pattern – although earlier today we witnessed the first such jump which moved the price over $60k since this pattern began.”

“However, the moves are compressing as the price crowds $60k,” he stated.

“The long series of higher lows indicates very strong support forming. The slowly compressing higher highs looks like a spring.”

Enneking offered a forward-looking statement, indicating that:

“Our thinking is that, once $60k breaks definitively on this or the next iteration of the pattern, we will see a major pop, and probably move to just above $70k.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.