Bitcoin is approaching a critical juncture in its price movement, as its average price across various time frames has converged, indicating the possibility of a breakout. Real Vision’s chief crypto analyst, Jamie Coutts, highlighted this trend, noting that Bitcoin’s average price over three short-term periods has fallen within a 5% range. On June 4, the simple moving average (SMA) showed convergence across the five-day, 30-day, and 50-day periods, with all three intervals ranging from $65,000 to $68,239. This consolidation suggests low volatility and raises hopes for a potential breakout, although it could also lead to a price retrace.
Bitcoin is currently considered a “Strong buy” according to TradingView’s moving average indicator, which takes into account both the SMA and the exponential moving average. The cryptocurrency is trading above the three SMAs at $70,840, indicating a favorable sign for traders. If the price falls, the moving average could potentially serve as a new support level for Bitcoin. It briefly reached $71,040 on the same day but quickly retraced, with traders keeping a close eye on this crucial price level as the next step towards reaching its all-time high of $73,679.
Over the last 30 days, Bitcoin has remained above its key support level of $60,000, a threshold closely monitored by traders. However, it hasn’t quite reached $72,000, peaking at $71,946 on May 21. While the direction of Bitcoin’s breakout remains uncertain, Coutts emphasized the significant increase in the number of US banks at risk of collapse during the first quarter of 2024.
The US Federal Deposit Insurance Corporation (FDIC) reported that the number of banks on the “Problem Bank List” rose by 21% in the first quarter of 2024, reaching 63 banks. Notably, after three banks collapsed in March 2023 (Signature Bank, Silvergate Bank, and Silicon Valley Bank), Bitcoin’s price surged by 35% over nine days to $27,050.