As Bitcoin (BTC) experiences stagnation in its current price, technical analysis suggests that the premier cryptocurrency is now at a critical point with the potential for significant moves.
Analysis shared by the investment research platform Trading game in a June 29 X article, he pointed out that Bitcoin could see significant market movements depending on its ability to navigate its current technical setup.
Notably, the analysis indicated that the ascending channel, a crucial feature, has been in play since early 2023. This channel has acted as both support and resistance, guiding the overall uptrend.
Recently, Bitcoin price fell back into the ascending channel after spending four months above it. This move is critical because it suggests a potential breakout, further downside risk, or false breakout if price regains the upper boundary of the channel.
“Bitcoin is at a very critical level now; it returned to the ascending channel after spending 4 months above it. If this movement is confirmed, a further decline is then in play. But if the price is able to recover the resistance of the channel, then it would be a false breakout,” noted the platform.
Levels to watch
Additionally, the MACD (Moving Average Convergence Divergence) indicator is showing bearish momentum. The MACD line is below the signal line, and both are in negative territory, indicating that the downtrend could continue if no significant reversal occurs.
The analysis further noted that the current level of around $60,800 is crucial. If Bitcoin fails to regain the upper channel line, investors could see a continuation of the downtrend with potential support levels around $52,000 and $44,000. Conversely, the recovery of the channel could signal a resumption and continuation of the uptrend, aiming for new highs.
The next few days or weeks are therefore critical. Confirmation of the breakout could trigger further selling, while a false breakout could provide a buying opportunity.
As things stand, Bitcoin is looking to avoid falling below the $60,000 support as the cryptocurrency continues to show signs of consolidation. Overall, Bitcoin and the broader cryptocurrency market are exhibiting a mix of uncertainty and volatility influenced by several factors, such as the US presidential election debate between Donald Trump and Joe Biden.
Additionally, Bitcoin has remained largely stable, unable to match the stock market at a time when new Personal Consumption Expenditures (PCE) Price Index data suggests inflation is cooling.
Bitcoin Price Analysis
Meanwhile, Bitcoin has fallen below the $61,000 support, changing hands at $60,900 at press time. While BTC has made modest gains of 0.3% over the past 24 hours, it remains down more than 5% over the seven-day period.
In summary, Bitcoin is facing a test as bears and bulls clash. If the bulls pull the asset above $61,000, investors will be hopeful. On the other hand, a drop below $60,500 could signal further selling.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
News Source : finbold.com
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