Bitcoin price must end June above $56.5K to defend uptrend — Analysis
A deluge of potential BTC price volatility triggers is due this week, and Bitcoin market participants are eyeing the most crucial support zone to hold.
Bitcoin risks losing its overall uptrend if it ends June below $56,500, a new BTC price warning says.
In market coverage on X on June 26, trading resource Material Indicators highlighted a key line in the sand for Bitcoin
BTC
tickers down
$61,380
bulls.
May lows become BTC price make or break level
BTC/USD hit its lowest levels since the start of May this week — and those old lows are now firmly in focus within trading circles.
Market pressure is likely to increase through the end of the week, Material Indicators predicts — not least due to the weekly, monthly and quarterly close all coming on a single day.
Should bears gain the upper hand, the $56,500 level from seven weeks ago will form the floor of a bottoming zone that buyers need to defend.
“So far, Bitcoin seems to be recovering nicely from this week’s mini flush,” co-founder Keith Alan commented alongside a chart from one of Material Indicators’ proprietary trading tools.
In a separate post, Alan tracked order book liquidity, cautioning over potential “spoofing” in the coming days. This refers to the artificial shifting of liquidity between various levels by large-volume traders in an attempt to influence price action.
“With the Presidential Debate, new inflation data and the Daily, Monthly, Quarterly and 6 Month candle closes ALL coming on Sunday, I’m expecting more volatility through the end of the wee,” he continued.
Order book data from the largest global exchange, Binance, showed a “ladder” of bid liquidity strengthening between the current spot price and $55,000.
Bitcoin traders bet on RSI rebound
As Cointelegraph continues to report, the BTC/USD trading pair has been experiencing its most “overbought” conditions since August 2023.
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On multiple timeframes, these relative strength index (RSI) levels have acted as bottom signals in the past — a phenomenon not lost on market participants.