Bitcoin price must end June above $56.5K to defend uptrend — Analysis
2024.06.26 05:11
Bitcoin risks losing its overall uptrend if it ends June below $56,500, a new BTC price warning says.
In market coverage on X on June 26, trading resource Material Indicators highlighted a key line in the sand for Bitcoin (BTC) bulls.
May lows become BTC price make or break level
BTC/USD hit its lowest levels since the start of May this week — and those old lows are now firmly in focus within trading circles.
Market pressure is likely to increase through the end of the week, Material Indicators predicts — not least due to the weekly, monthly and quarterly close all coming on a single day.
Should bears gain the upper hand, the $56,500 level from seven weeks ago will form the floor of a bottoming zone that buyers need to defend.
“So far, Bitcoin seems to be recovering nicely from this week’s mini flush,” co-founder Keith Alan commented alongside a chart from one of Material Indicators’ proprietary trading tools.
“There is always a chance that price goes back to retest the lows before Sunday, but as long as the monthly candle closes within or above the red box, then the trend remains in tact.”
BTC/USD chart. Source: Material Indicators
In a separate post, Alan tracked order book liquidity, cautioning over potential “spoofing” in the coming days. This refers to the artificial shifting of liquidity between various levels by large-volume traders in an attempt to influence price action.
“With the Presidential Debate, new inflation data and the Daily, Monthly, Quarterly and 6 Month candle closes ALL coming on Sunday, I’m expecting more volatility through the end of the wee,” he continued.
“As the week develops, I’m watching to see where liquidity concentrates to identify the strongest areas of resistance and support. Watch out for possible spoofs.”
BTC/USDT order book liquidity for Binance. Source: Keith Alan
Order book data from the largest global exchange, Binance, showed a “ladder” of bid liquidity strengthening between the current spot price and $55,000.
Bitcoin traders bet on RSI rebound
As Cointelegraph continues to report, the BTC/USD trading pair has been experiencing its most “overbought” conditions since August 2023.
Related: Bitcoin exchange balances ‘overrated?’ 140K BTC Mt. Gox payout sparks debate
On multiple timeframes, these relative strength index (RSI) levels have acted as bottom signals in the past — a phenomenon not lost on market participants.
Source: Ali
“Coins moving from their heavily oversold 1 day RSI levels back to an average of ~36,” popular trader Daan Crypto Trades noted on the day.
“This is still low and leaves a lot of room for growth. But the market needs Bitcoin & $ETH to lead the way and alts will have a good time.”
BTC/USD 1-day chart with RSI data. Source: TradingView
Bitcoin’s daily RSI stood at 34.2 at the time of writing, per data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
