Bitcoin is struggling to overcome weakness, judging by its performance in the last few trading days. After the rejection on June 24, the mood is complete, and sellers will double down, erasing the gains posted in the last two days.
As things stand, the sale of 4,000 BTC by the United States government is a factor for buyers. It comes hours after the German government dumped thousands of BTC earlier this week, forcing prices down.
Bitcoin Trend in Oversold Zone
One analyst is happy even in the midst of this feeling of uneasiness in the entire crypto and Bitcoin markets. Citing the structure of the RSI indicator, a tool for gauging momentum, the analyst is make sure rates may recover significantly going forward.
Bitcoin is at its lowest overbought level in over 300 days in virtual currency. This structure includes a similar situation in 2023 when prices are stuck below $30,000.
When BTC reached the oversold zone, the prices rose sharply, falling above $50,000 and reaching the highest value in the coming months in March 2024.
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So far, Bitcoin finds itself in oversold territory after consolidating for almost three months after the March 2024 rate hike. Then prices rose to $73,800 before dropping sharply, reaching $56,500 in May 2024. Although prices have recovered, they found another ceiling at $72,000. , the path of least resistance in the short term is bearish.
Bitcoin is testing the lower boundary of its horizontal range for the fifth time since March. For the bulls to be in control, prices must hold above the $56,500 and $60,000 areas for the bullish bias to remain.
However, a confirmed breakout below the lower range could see BTC crater to as low as $50,000-$52.
Will BTC Jump Higher? Capital Flow To Spot ETFs
Another commenter too it is waiting recovery rates, underscoring the importance of the bull market support band. Share X, the analyst said this support band served as a reliable loading point in the previous bull cycle.
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Its successful defense in January 2024 provides a good example. With BTC at the same level, chances are that a refreshing bounce is on the cards, offering a glimmer of hope.
Despite recent price declines and days, if not weeks, of outflows, interest in Bitcoin exchange-traded funds (ETFs) is increasing.
On June 26, there were $21.5 million in these products. In this case, Fidelity and Grayscale saw the entry, according to SosoValue data.
Insert image from DALLE, chart from TradingView
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