Bitcoin looks to regain poise during overnight trading, after it avoided a short-term bullish-to-bearish trend change with the help of a crucial support level.
The top cryptocurrency by market value is trading near $61,400 at press time, representing a 1.4% gain on the day.
While prices fell by 4.3% on Tuesday, sellers failed to break the support level near $59,800 and confirm a “head-and-shoulders” breakdown on the four-hour chart.
Chart analysts consider a head-and-shoulders breakdown as a bearish signal. The pattern often yields an extended sell-off to the downside.
A potential head-and-shoulders breakdown on the four-hour chart would expose support near $54,000.
Resistance is seen at $63,700, which was the high on Monday. A higher break could take bitcoin to record highs.