Bitcoin Nears Six-Week Low as Lack of Sustained Buying Raises Concerns
Summary:
Bitcoin neared a six-week low on June 21, with BTC/USD hitting $63,356 on Bitstamp and struggling to reach the $64,000 mark. Analysts noted a lack of sustained buying and reliance on automated trading algorithms for the week's fluctuation. Market observers also highlighted Bitcoin's crossing of a major bull market trendline, the Short-Term Holder Cost Basis. The need for thorough research before making investment decisions was underlined due to the related risks involved.
On June 21, Bitcoin (BTC) was approaching a six-week low; traders warned that purchases were not being triggered yet. Tracking the challenging BTC price movement for another day, BTC/USD reached $63,356 on Bitstamp. This reflects a decrease of 3.7% for the week and 5.75% for June, with the currency finding it tough to even reach the $64,000 benchmark.
Renowned trader, Skew, analyzed the current market structure and noticed some increase in buyer interest during the lows. However, he also mentioned the need for sustained buying to initiate a more comprehensive recovery. Nevertheless, he deplored the lack of sincere market involvement, with the price being subject to automatic trading algorithms throughout the week.
Another trader, Roman, observed that the price wanted to hit $60k once again, pointing out potential indicators for a bounce back in Bitcoin's price. Trader Jelle also outlined the fascinating pattern of Bitcoin sliding further lower while the Relative Strength Index (RSI) holding above 30.
During this decline, Bitcoin crossed a significant bull market trendline called the Short-Term Holder Cost Basis (STHCB) or the realized price. This development piqued the interest of market observers, with one commentating that it was time for Bitcoin to 'fight'. Co-founder of trading resource Material Indicators, Keith Alan, flagged the 21-week Simple Moving Average (SMA) at $63,074 as a point of interest. However, he cautioned that the liquidity in the order book was relatively low around this region.
This piece of news doesn't offer any investment advice or suggestions. Every investment or trading move comes with its own risks, and the readers are advised to conduct comprehensive research before making any decisions.
Published At
6/21/2024 7:03:59 PM
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