Bitcoin (BTC) has once again failed to rise above the key resistance level of $75,000, raising concerns about the long-term recovery of cryptocurrencies.
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BTC has risen nearly 15% in the past week on hopes for a lasting peace deal between the U.S., Israel, and Iran. Bitcoin has risen from a low of $66,000 to as high as $75,000, and even flirted with the $76,000 mark before once again being rejected and pulling back.
This is the latest attempt by the world’s largest cryptocurrency to break above the $75,000 resistance zone, a level crypto analysts agree is important for BTC to stage a meaningful, long-term recovery and get back above $100,000.
Catalysts for Bitcoin?
Currently trading at $74,000, Bitcoin is 41% below the all-time high of $126,000 it reached last October. Its price has reached $75,000 several times since February of this year, but failed to maintain that level, exerting downward pressure on the broader cryptocurrency market in the process.
Wall Street analysts remain divided over the near-term direction of BTC. Bulls point to catalysts that could drive a breakout such as a permanent peace deal that will end the war in Iran, potential interest rate cuts later this year, and improving sentiment among investors. However, bears caution that crypto prices are likely to remain volatile given geopolitical uncertainty and elevated energy prices.
BTC’s Three-Month Performance
The chart below shows that Bitcoin has struggled in recent months and declined 22% in the last 12 weeks as the selloff in cryptocurrencies that began last October has continued.
