Bitcoin faces a critical juncture as June draws to a close, with warnings that its bullish trend could be jeopardized if it closes below $56,500. On June 26, trading analysis from Material Indicators pinpointed this level as pivotal for Bitcoin bulls.
This week, BTC/USD dropped to its lowest point since early May, focusing attention squarely on these previous lows within trading circles. Material Indicators anticipates growing market pressure by week’s end, particularly with the weekly, monthly, and quarterly closures coinciding.
If bears take control, the $56,500 level established seven weeks ago could mark a crucial support zone that buyers must vigorously defend. “Bitcoin appears to be recovering well from this week’s minor downturn,” remarked Keith Alan, co-founder, alongside a chart from Material Indicators’ trading tools.
In a separate analysis, Alan cautioned about potential “spoofing” in upcoming days, where large-volume traders manipulate liquidity levels to influence prices. “Given the upcoming Presidential Debate, new inflation data, and the closure of daily, monthly, quarterly, and six-month candles all on Sunday, I expect increased volatility through the week,” he added.
Analyzing order book data from Binance, the world’s largest exchange, revealed strengthened bid liquidity forming a ladder between current spot prices and $55,000.
Meanwhile, Bitcoin traders are closely watching the Relative Strength Index (RSI), noting the most “overbought” conditions since August 2023 for the BTC/USD pair. Historical data suggests RSI levels could indicate market bottoms across multiple timeframes, a trend noted by traders.
“Coins are rebounding from heavily oversold 1-day RSI levels, averaging around ~36,” observed popular trader Daan Crypto Trades.
As of the latest update, Bitcoin’s daily RSI stood at 34.2, according to data from Cointelegraph Markets Pro and TradingView.
It’s essential to note that this article does not offer investment advice. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.