Bitcoin price snaps back above $62,000, but technical traders are unsure whether the BTC downtrend is over.
Bitcoin price hit a six-week low on June 24 before buyers stepped in to send the price back above $62,000 less than 24 hours later.
Analyzing the current market structure of Bitcoin
BTC $61,029, popular trader Jelle acknowledged that some buyer interest was returning at the lows, with the $60,000 zone acting as support.
“If #Bitcoin can lock in a lower-timeframe higher low today, I think we run it back to $63,500 before the week is out,” the analyst wrote in a June 25 post on X.
“Above that, and red Monday, green week becomes a reality.”
Jelle also noted the oversold conditions displayed by the BTC price following its drop to $58,400 on June 14, pointing to similarities between the current price action and when Bitcoin traded around $26,000 in August 2023.
While the 2024 cycle is different, with Bitcoin producing a new all-time high before the block subsidy halving, plenty of evidence suggests that Bitcoin’s steepest gains are still ahead.
For Jelle, the relative strength index (RSI) is a major conducive factor.
The RSI is a trend-following oscillating indicator that captures how much an asset is overbought or oversold at a given level. In a daily time frame, BTC/USD paints an exciting picture.
“Bitcoin’s daily RSI has not been this low in nearly a year,” the analyst wrote in a June 24 post on X.
“In fact, the last time we saw oversold conditions was when BTC traded at $26,000. Summer shakeout?”
Historically, Bitcoin tends to show its most strident upside when the RSI is in the “oversold” zone below 70. Such readings can lead to steady rebounds that can endure for a considerable length of time before the BTC price rally becomes sustainable.
Also commenting on Bitcoin’s dip below $60,000 was Robert Kiyosaki, the author of “Rich Dad, Poor Dad,” who saw this as a chance to increase his holdings.
“Bitcoin is crashing. Most people should sell. I am waiting to buy more,” said Kiyosaki in a recent post on X.
The famous author suggested that those terrified by Bitcoin crashes should sell and hold a steady job during market downturns.
“If crashes terrify you, sell and hang on tight to your job, which is what most “employees” should do.”
The recent Bitcoin crash was partly triggered by selling pressure from the defunct crypto exchange Mt. Gox. On June 24, the Mt. Gox trustee announced plans to repay its creditors in July. Under the rehabilitation plan, creditors will receive repayments in Bitcoin and Bitcoin Cash
BCH $376, estimated to be worth over $9 billion at current rates.
Bitcoin finds support at the $60,000 support level
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin attempting to recover the $62,000 level after dropping under $60,000 on June 24.
The demand area between $60,000 and $64,000 is a key support that traders and analysts are looking out for, as a breach of this level could result in deeper corrections.
“$BTCUSD still a steady uptrend. Still can be considered a pullback to the channel,” popular trader Aksel Kibar declared in his latest Bitcoin analysis on X.
Citing a bullish technical setup, the analyst pointed out the importance of the support provided by the upper boundary of the ascending parallel channel at $60,000.
“A long black weekly candle that breaks down the support at 60K will change the outlook from bullish to bearish with double top interpretation.”
According to CoinGlass, the largest concentrations of bids that have appeared in the 24 hours to the time of writing are $60,200, $60,600 and $61,230.
Source: Cointelegraph
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