As a researcher with several years of experience in cryptocurrency markets, I’ve seen my fair share of price volatility in Bitcoin. Tuesday’s price drop to $64,000 was another nail-biting moment for holders, but the strong buying support at that level gives reason for cautious optimism.
As a researcher studying the cryptocurrency market, I observed an unsettling trend on Tuesday as Bitcoin‘s price dipped down to a reliable support level of $64,000. This decrease left many investors feeling jittery. However, the situation took a turn for the better when robust buying emerged from this point. Presently, Bitcoin is attempting to surmount the $65,500 resistance once more. Could this be an indication of a local minimum?
Is this dump over?
Over the past two weeks, Bitcoin’s price has experienced a significant decline of approximately 9%. If we consider the dip on Tuesday that reached as low as $64,000, the decrease amounts to around 11%. As Bitcoin holders ponder their investments, they are left questioning whether this price drop has come to an end or if further declines lie ahead.
Strong buying support at $64,000
From my perspective as a researcher analyzing the daily chart, it appears that the price has dropped below the previous support of $65,500. However, for this level to be definitively considered resistance, we would need Wednesday’s candle to close below this point as well. The significant buying activity is evidenced by the long wick extending down to the $64,000 mark, indicating robust support at that price level.
Trend line support is critical
In line with the norm, the weekly chart offers a more definitive viewpoint. It appears that the Bitcoin price maintaining $65,000 as its foundation could signal a continuation of the uptrend. A conclusive weekly closing price would be required to validate this support and confirm the trend’s integrity. If instead, the price opens a new candle beneath $65,000, it may suggest a break from the upward trajectory.
$60,000 major fibonacci level
As an analyst, I’ve noticed that the Fibonacci levels provide insight into the major support areas for Bitcoin’s price action. Specifically, I’ve observed that the $60,000 level has acted as a significant support in no fewer than seven out of the past sixteen weeks. If this trend were to be broken, it could potentially mean that $60,000 would no longer hold and give way to further price declines. The subsequent levels of support can be found at $52,000 and then $46,000. A breakdown below these levels might signal the beginning of a potential bear market for Bitcoin.
$BTC entering oversold territory
As an analyst, I’ve been closely monitoring Bitcoin’s market trends despite the ongoing challenges, including miners selling post-halving, profit-taking by long-term holders, and hedge funds employing paper shorts on the CME exchange. Nevertheless, I believe a bounce is imminent, possibly as early as this week or next. On medium to higher timeframes, Bitcoin is showing signs of entering oversold territory, suggesting that upward momentum could soon kick in and push prices higher.
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2024-06-19 13:12