Bitcoin’s days below $70K are numbered as traders cite BTC’s swing low as the bottom
2024.06.20 15:00
Bitcoin’s (BTC) price has been trending lower over the last two weeks, and analysts believe that the pioneer cryptocurrency appears to have “bottomed” in the area between $63,000 and $65,000.
“Bitcoin has likely bottomed in this area between $63-65K,” MN Capital founder Michaël van de Poppe wrote in a June 20 post on the X social media network.
Van de Poppe’s analysis appears to have been informed by Bitcoin’s modest bounce from $64,950 to a high of $66,455 during the European trading session on June 20.
The analyst shared the following chart with his X followers. It shows BTC bouncing off a key demand level, indicated by the green band, stretching from $63,000 to $65,000.
Van de Poppe explained that if the price holds above this level, it will find “itself in upward momentum.”
“The reversal is on the horizon.”
BTC/USD daily chart. Source: Michaël van de Poppe
Fellow analyst Jelle shared a similar sentiment, declaring that BTC continued the fight for range lows around the key $65,000 support level and that bulls were working on turning the market structure around to lock in “a local higher low and higher high.”
“Bitcoin’s local market structure is slowly shifting back to bullish. Eyes on a reclaim of $66,000 – for confirmation of strength,” Jelle explained.
The 200-day EMA provides the last line of defense for Bitcoin’s price
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin’s price action has formed a series of higher lows on the daily chart to stay above the ascending trendline. Bitcoin bulls are required to hold the price above this level to secure the recovery.
The appearance of a doji candlestick on the daily chart implied the importance of the $65,000 level for both buyers and sellers.
BTC/USD daily chart. Source: TradingView
However, if bulls lose the ongoing battle, they may retreat toward the 200-day exponential moving average (EMA), which appears to be the last line of defense for BTC at $64,300.
Data from IntoTheBlock, whose In/Out of the Money Around Price (IOMAP) model reveals that Bitcoin’s price sits on relatively strong support downward, also reinforces this level’s importance.
The 200-day EMA and the $65,000 psychological level are found within the $64,018–$65,975 price range, where approximately 1.07 million BTC was previously bought by about 1.75 million addresses.
Bitcoin IOMAP chart. Source: IntoTheBlock
This suggests that high demand-side liquidity from this cohort of investors could push BTC’s price past the resistance provided by the 100- and 50-day EMAs at $66,699 and $67,000, respectively, breaking it out of consolidation and into price discovery.
If this happens, according to popular analyst Moustache, BTC’s price below $70,000 could be the last time we see it.
Moustache explained that the BTC price was nurturing an inverse head-and-shoulders pattern on the daily timeframe, which is becoming “more and more of a reality” for Bitcoin.
Source: Moustache
The inverse head-and-shoulders pattern forms a reversal setup and includes an “inverted” head and shoulders, with the left and right shoulders upside down below the neckline.
If the pattern continues, Bitcoin’s price could embark on a massive upward breakout toward its next key price level of $72,000 before potentially breaking its current all-time high price of $73,835, eventually making a run for $100,000, according to Jelle.
This would be an almost 55% jump from the current price, according to CoinMarketCap data.
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.
