Bitcoin experienced a significant downturn on June 24, hitting its lowest point in six weeks. However, swift buyer activity promptly lifted the price above $62,000 within less than 24 hours.
Analyzing Bitcoin’s current market dynamics, well-known trader Jelle noted a resurgence of buyer interest near the $60,000 mark, identifying it as a crucial support zone. In a June 25 update, Jelle expressed optimism, suggesting that if Bitcoin could establish a higher low on shorter timeframes, a rebound to $63,500 seemed likely by week’s end.
Jelle also observed oversold conditions in Bitcoin’s price, reminiscent of its trading around $26,000 in August 2023, despite the distinctions in the 2024 market cycle. Anticipating continued growth, particularly after Bitcoin set new all-time highs prior to the upcoming block subsidy halving, Jelle highlighted the relative strength index (RSI) as a significant factor. The RSI, an indicator of asset overbought or oversold conditions, showed Bitcoin’s daily RSI at its lowest in nearly a year as of June 24.
Historically, Bitcoin has demonstrated robust upward momentum when its RSI enters oversold territory, typically below 70. This pattern often leads to sustained rebounds, suggesting potential for prolonged price increases.
Commenting on Bitcoin’s dip below $60,000, Robert Kiyosaki, renowned author of “Rich Dad, Poor Dad,” viewed this as an opportunity to accumulate more Bitcoin rather than a reason to sell. In contrast, he advised those fearful of market fluctuations to maintain a stable job rather than panic sell.
The recent downturn in Bitcoin’s price was partly influenced by selling pressure related to the now-defunct Mt. Gox crypto exchange. The announcement on June 24 that Mt. Gox would begin repaying creditors in July, primarily in Bitcoin and Bitcoin Cash (BCH), worth over $9 billion at current rates, contributed to market volatility.
Technical data from Cointelegraph Markets Pro and TradingView indicated Bitcoin’s attempt to reclaim the $62,000 level following its drop below $60,000. Market observers emphasized the $60,000 to $64,000 range as critical support, monitoring potential deeper corrections if this level were breached.
Popular trader Aksel Kibar echoed this sentiment, describing Bitcoin’s trend as steadily upward and interpreting recent declines as part of a broader channel pattern. He highlighted the importance of the $60,000 mark as the upper boundary of an ascending parallel channel, suggesting it as a key support level.
According to CoinGlass, significant bids clustered around $60,200, $60,600, and $61,230 within the past 24 hours, underscoring market sentiment and support levels.
This article serves informational purposes only and does not offer investment advice. All investment decisions involve risk, and readers should conduct thorough research before making any financial decisions.