Bitcoin (BTC) approached its lowest levels in nearly six weeks on June 21st amidst concerns from traders about the absence of buying activity.
BTC/USD 1-hour chart. Source: TradingView
BTC price analysis: Bulls struggle to regain momentum
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD dropped to $63,356 on Bitstamp, marking a 3.7% decline week-to-date and a 5.75% drop for the month of June. Even at the $64,000 mark, Bitcoin faced resistance in gaining traction.
Analyzing the current market dynamics, noted trader Skew acknowledged a slight return in buyer interest at lower levels but stressed the necessity for sustained buying to support a broader recovery.
“Potential LTF absorption going on here,” he commented in his recent update on X.
Bitcoin market data. Source: Skew/X
Skew also highlighted a “lack of substantial market participation,” attributing the price movements largely to automated trading algorithms dominating the market throughout the week.
“Looks like price wants 60k once again as 1D is currently losing 64.5k. H4 shows bullish divergences across RSI/MACD, subject to change,” added fellow trader Roman in his market analysis for the day.
BTC/USD chart with RSI data. Source: Jelle/X
“Bitcoin continues to decline without reclaiming range lows, maintaining RSI above the 30 level,” noted trader Jelle, describing the behavior as “interesting.”
Bitcoin challenges short-term holder cost basis
Bitcoin’s recent decline brought it to and below a significant bullish trendline known as the short-term holder cost basis (STHCB), or realized price.
Related: 6 months of sideways? Bitcoin price action mimics 2023 lull
As reported by Cointelegraph, this trendline, acting as support at $64,000, had remained untested since the end of the 2022 bear market.
Market observers reacted to this development, with On-Chain College commenting that it was “time for Bitcoin to battle.”
“A notable breakout above the STHCB now, with price at $64.2k and the STHCB at $64k. Let’s monitor its interaction at this level throughout the day,” he added in ongoing X coverage.
Bitcoin short-term holder cost basis. Source: On-Chain College/X
Keith Alan, co-founder of trading resource Material Indicators, also pointed out the significance of the 21-week simple moving average (SMA) at $63,074 as another critical level.
In his latest video update shared on X, he cautioned about relatively low liquidity in the order book around this area.
BTC/USD 1-week chart with 21SMA. Source: TradingView
This article does not offer investment advice or recommendations. Every investment or trading decision involves risk, and readers should conduct their own research before making decisions.