Bitcoin price must end June above 56.5 thousand to prevent growth – analysis
Bitcoin may lose its entire rally if it ends below $56,500 in June, says a new BTC price warning.
On the June 26 X Market coverage, trading inputs material indicators highlighted a key line in the sand for Bitcoin (BTC) bulls.
The lowest BTC price can make or break.
BTC/USD hit its lowest level since early May this week – and those old lows are now firmly in focus in trading circles.
Material indicators predict that market pressure will increase over the weekend – at least weekly, monthly and quarterly closes all on the same day.
The $56,500 level from seven weeks ago, when the bears should be dominant, creates a lower zone floor that buyers need to defend against.
“So far Bitcoin seems to be recovering well from this week's minor flash,” co-founder Keith Allan commented with one of the material indicators' proprietary trading tools chart.
“There is always a chance that the price will go back to test the lows before Sunday, but as long as the monthly candle closes in the red box or above, the trend will continue in tact.”
In a separate post, Allen monitored the flow of the order book, warning of the possibility of “fraud” in the coming days. This refers to the shifting of liquidity between different levels by large traders to influence artificial inflation.
“With the presidential debate, new inflation data and daily, monthly, quarterly and 6-month candles all closing on Sunday, I expect more volatility towards the end,” he continued.
“As the week develops, I'm looking to see where liquidity is concentrated to identify the strongest resistance and support areas. Watch out for potential spoilers.
Order book data from the largest global exchange, Binance, showed a “ladder” of bid liquidity consolidation between the current spot price and $55,000.
Bitcoin traders bet on the recovery of the RSI
As Cointelegraph continues to report, the BTC/USD trading pair is experiencing the most “overbought” conditions since August 2023.
Related: Bitcoin Exchange Scales ‘Overvalued?' 140K BTC Mt. Gox payment dispute
Across multiple timeframes, these relative strength index (RSI) levels have served as bearish signals in the past – a phenomenon not lost on market participants.
“Coins averaged back to ~36 from oversold 1-day RSI levels,” noted trader Daan CryptoTrades said on the day.
“This is still low and leaves a lot of room for growth. But the market needs Bitcoin and $ETH to lead the way and alts will have a good time.”
Bitcoin's daily RSI stands at 34.2 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
