Bitcoin’s price experienced a significant drop on June 24, hitting a six-week low before rebounding to over $62,000 within a day. Popular trader Jelle noted that there was a return of buyer interest at the $60,000 support level, expressing optimism for a potential bounce back to $63,500 by the end of the week.
Jelle also highlighted the oversold conditions of Bitcoin’s price following the drop to $58,400 on June 14, drawing parallels with a similar price action in August 2023 when Bitcoin traded around $26,000. Despite the differences in the 2024 cycle, with Bitcoin reaching a new all-time high before a block subsidy halving, there is evidence indicating that Bitcoin’s most significant gains are still ahead, particularly with the relative strength index (RSI) pointing to an oversold condition not seen in nearly a year.
According to historical patterns, Bitcoin often shows strong upside potential when the RSI is in the “oversold” zone below 70, leading to sustained rebounds before a sustainable rally. The recent dip below $60,000 prompted Robert Kiyosaki, author of “Rich Dad, Poor Dad,” to consider it an opportunity to increase his holdings, advising those fearful of Bitcoin crashes to sell and maintain a steady job during market downturns.
The drop in Bitcoin’s price was partly attributed to selling pressure from the defunct crypto exchange Mt. Gox, which announced plans to repay creditors in July, with repayments estimated to be worth over $9 billion at current rates in Bitcoin and Bitcoin Cash.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin attempting to recover the $62,000 level after dropping below $60,000 on June 24. Traders and analysts are closely monitoring the support area between $60,000 and $64,000, emphasizing the importance of this level to prevent deeper corrections.
Popular trader Aksel Kibar also identified a bullish technical setup, highlighting the significance of the support provided by the upper boundary of the ascending parallel channel at $60,000. CoinGlass reported the largest concentrations of bids in the 24 hours to the time of writing at $60,200, $60,600, and $61,230.
It’s important to note that this article does not constitute investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.