Bitcoin's Uptrend at Risk if June Ends Below $56,500, Traders Foresee RSI Rebound
Summary:
Bitcoin's prevailing uptrend could be at risk if its price concludes June below $56,500, according to a BTC price warning from trading resource Material Indicators. There's a likelihood of an escalation in market turbulence towards the end of the week. Should the bears emerge dominant, the $56,500 level from seven weeks ago becomes a crucial defense line for buyers. Bitcoin traders are also expecting an RSI rebound as the BTC/USD trading pair has been significantly oversold.
Bitcoin's prevailing growth trend might be in jeopardy if the crypto fails to keep its price above $56,500 as June ends, warns a new prediction about BTC price. A crucial threshold for Bitcoin enthusiasts has been underlined on June 26 by trading source Material Indicators, during their market analysis on platform X (formerly known as Twitter). The new pivot level to watch in BTC price becomes the lowest recorded in May.
This week witnessed the most severe BTC/USD dip since the beginning of May, an occurrence that has now roused intense attention among trading communities. The market turbulence is expected to escalate towards this week's end, according to forecasts by Material Indicators, sparked by the convergence of the weekly, monthly, and quarterly close all on the same day.
Should the bears seize control, a potential floor at the $56,500 mark, established seven weeks ago, will become a critical line of defense for buyers. Keith Alan, co-founder of the resource, accompanied a Material Indicators' exclusive trading tool's chart with comments about Bitcoin's commendable recovery from this week's slight plunge. He asserted that it's still plausible for the price to revisit its lowest point before Sunday ends but remained optimistic about the prevailing trend, provided the monthly candle concludes within or above the identified red box.
In correlation to monitoring order book liquidity, Alan sounded a note of caution about the likelihood of “spoofing” in the days to come. He explained that this term refers to the orchestrated liquidity variation across different levels by high-volume traders aiming to dictate price movements.
Alan predicts heightened volatility up to the week's end due to a host of factors including the Presidential Debate, new inflation data, and the simultaneous closure of Daily, Monthly, Quarterly, and 6 Month candles all happening on Sunday. He stated his intent to monitor liquidity concentration to identify the most resistant and supportive areas, advising vigilance for possible spoofs.
Data from the world's largest exchange, Binance, demonstrated a bid liquidity “ladder” solidifying between the current spot price and the $55,000 mark. Bitcoin traders are wagering on an RSI rebound, as BTC/USD has been at its most “overbought” since August of the previous year, an aspect Cointelegraph has been persistently reporting.
Many market players have noted how these RSI levels from multiple timeframes have previously indicated market bottoms. Trader Daan Crypto Trades mentioned how coins had rebounded from significantly oversold 1-day RSI levels back to an average of about 36. He stated that there remain ample prospects for growth if Bitcoin and $ETH maintain leadership and alts seize the opportunity. At the point of writing, Bitcoin’s daily RSI was at 34.2, according to data from Cointelegraph Markets Pro and TradingView.
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Published At
6/26/2024 11:10:00 AM
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