Bitcoin Holds Steady at $71k: A Retest of Lower Levels on the Horizon?
Summary:
Bitcoin's strong position at $71,000 on June 7 stirred speculations of a retest of lower levels as per analytics tools. Market predictions hint towards a meaningful descent to a significant support point of $69,000. Despite fluctuations and significant Bitcoin sales on exchanges like Coinbase and Binance, bulls managed to halt the downturn. Analysts believe that Bitcoin seems poised to break from its set range and surge to a new peak, attributing a slow progression towards all-time highs to major investors holding the market back.
The steadfast stance of Bitcoin (BTC) at $71,000 continued on June 7, prompting speculations of an impending lower levels retest. TradingView showcased BTC's upward trajectory following a daily low at $70,120 on Bitstamp. This trend prevailed throughout the week, oscillating between resistance below peak levels and stark downside wicks. For instance, on June 5, BTC/USD plummeted to $69,600 before recovery, showing the market's prediction of a significant descent to a critical support point of approximately $69,000. Projections from proprietary trading algorithms pointed towards an impending revisit of local support.
Keith Alan, cofounder of Material Indicators, expressed optimism about testing $69,000 levels, an important psychological barrier, likely to be supported by bulls. The 21-day moving average echoed the strength of this technical support at around $68.8k. However, an unexpected mild unemployment report or market instability might lead to lower prices thereby punishing late investors. The mention of an unemployment report was an anticipation of the impending release of US macroeconomic data expected to influence BTC price volatility.
Significant BTC sales were noticed on leading exchanges, Coinbase and Binance, during the June 6 US trading session. On Coinbase solely, a heavy 2,000 BTC were sold, raising questions about who could be cashing out such a huge sum. Fortunately, bulls salvaged the day with a last-minute intervention, averting a persisting "weakness" that could impose long-term effects on BTC price trends.
More macro-level observations by Michaël van de Poppe, founder and CEO of MNTrading, revealed that Bitcoin is yet to break from its established range, in spite of the recent positive indicators. He asserts that BTC is preparing for a significant breakout to a new peak level.
Major investors or "whales" have been held accountable by Alan for the sluggish progression towards all-time highs. He believes the whales are deliberately moderating the market to secure their short positions. Liquidity data from CoinGlass at the time of writing emphasizes $71,900 as an important concentration zone above the spot price.
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Published At
6/7/2024 10:30:00 AM
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