bitcoin is struggling to shake off the weakness, judging by its performance over the past few trading days. Following the June 24 crash, the overall sentiment has been bearish and sellers are likely to double down on their profits, erasing the gains recorded over the past two days.
As things stand, the US government’s sale of 4,000 btc is a shock to buyers. It comes hours after the German government dumped thousands of btc earlier this week, forcing prices down.
bitcoin is in an oversold situation
One analyst remains optimistic even amid this sense of unease in the cryptocurrency and bitcoin markets. Citing the formation in the RSI indicator, a tool for measuring momentum, the analyst is x.com/CryptoJelleNL/status/1806221909052256551″ target=”_blank” rel=”nofollow”>convinced Prices could recover strongly in the future.
bitcoin is at its lowest overbought level in over 300 days at spot exchange rates. This formation echoes a similar situation in 2023, when prices remained below $30,000.
Once btc moved into oversold territory, prices rebounded strongly, surpassing $50,000 and reaching an all-time high in the coming months until March 2024.
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So far, bitcoin is in oversold territory after consolidating for about three months after peaking in March 2024. Prices then skyrocketed as high as $73,800 before falling sharply, reaching $56,500 in May 2024. Although the Prices have recovered, finding another ceiling at $72,000, the path of least resistance in the short term is bearish.
bitcoin is testing the lower boundary of its horizontal range for the fifth time since March. For the bulls to take control, prices must stay above the $56,500 and $60,000 zones for the bullish bias to hold.
However, a confirmed break below the range low could see btc crater as low as $50,000-$52.
Will btc bounce higher? Capital flow to detect ETFs
Another analyst too x.com/thescalpingpro/status/1806009780106121588″ target=”_blank” rel=”nofollow”>wait prices recover, emphasizing the importance of the bull market support band. Sharing x, the analyst said that this support band has served as a reliable loading zone in the last bullish cycle.
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His successful defense in January 2024 offers a positive precedent. With btc at the same level, the probability of a refreshing bounce is high, providing a glimmer of hope.
Despite the recent price decline and days, if not weeks, of capital outflows, interest in spot bitcoin exchange-traded funds (ETFs) is increasing.
As of June 26, there was $21.5 million in these products. Of this, Fidelity and Grayscale saw inflows, according to SosoValue.btc-spot” target=”_blank” rel=”nofollow”> data.
Featured image of DALLE, TradingView chart
