Bitcoin's Price Correction Likely with Clusters above $71.6K, Predicts Healthy Reset
Summary:
Bitcoin's (BTC) price may be heading for further correction given evidence of price movements lingering around the $71,600 mark. Experts suggest a drop below $64,000 is needed for a constructive reset before the "parabolic phase" commences. Significant support for Bitcoin is found at $64,500, with a potential move below liquidating over $520 million of leveraged long positions. Short-term holders may provide Bitcoin stability above $62,200 as BTC's relative strength index suggests the cryptocurrency is due for a further decline before ascending again.
Evidence of price movements hovering around the $71,600 point suggests that Bitcoin's (BTC) value might be headed towards further correction. Will Bitcoin's cost descend further before entering the parabolic stage? There's a likelihood of correction imminent as Bitcoin clusters above $71.6K.
A 'price cluster' pertaining to Bitcoin denotes the cryptocurrency's propensity to hover around round figures. Crypto analyst Rekt Capital suggests that a price cluster forming near the high of $71,600 indicates more potential downward activity. In a June 17 post to his 477,000 followers, the analyst highlighted that such clusters typically precede a drop into lower range levels.
Bitcoin reached a peak of $71,949 on June 7 before reducing to the present day value of $65,393. The pioneer of cryptocurrencies has seen a 5.7% drop on the week, as indicated by Bitstamp data.
Relating to recent Bitcoin whale accumulation reaching prior to 2020 bull run levels, it raises the question of whether Bitcoin is set to exceed $70K. Bitcoin may need to fall below the $64,000 threshold for a constructive reset before the “parabolic phase” of the bull cycle commences, underlines Rekt Capital. However, Bitcoin is nearing a retest of those previously filled Daily CME Gaps at approximately $64,000 and $62,500.
On another front, a chart formation on a monthly timeline suggests that Bitcoin may dip below $60,000, claims Titan of Crypto. A review of Bitcoin's RSI (Relative Strength Index), used to gauge if an asset is overbought or oversold, indicates a possible need for Bitcoin to decline before it ascends again.
As of June 17, the Bitcoin RSI was at 41, indicating fair valuing of Bitcoin. But, it fell to 33 during the major correction of May 1, when Bitcoin was at $56,600 before it resumed bullishly.
Liquidation levels show substantial support for Bitcoin around $64,500. A move below this could result in over $520 million worth of leveraged long positions been liquidated, as per Coinglass's data.
However, considering the cost basis for STHs (short-term holders), who hold Bitcoin for up to 155 days, Bitcoin could find stability above $62,200. Bitcoin's realized price for STHs currently stands at $62,200, as shown by CryptoQuant data. The realized price could indicate the next major support level for Bitcoin, as the STH cohort tends to represent the more speculative side of the Bitcoin holders.
Please note that this article offers no investment advice or recommendation. Each and every investment and trading step carries risk, so conduct thorough research before making any decisions.
Published At
6/17/2024 7:23:19 PM
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