As a researcher with a background in finance and experience in analyzing cryptocurrency markets, I believe that the current double-bottom pattern forming in Bitcoin presents an opportunity for a significant bullish move. The support levels at $60,000 and $58,844, which have been tested twice in May and June, are crucial for defending against further selling pressure.
As a researcher studying the cryptocurrency market, I’ve observed a significant selling wave in June that caused Bitcoin‘s price to dip down to $60,000. At its lowest point, Bitcoin’s candle wick reached an intraday low of $58,488, indicating a weakened momentum and shrinking enthusiasm among traders.
As a researcher studying the crypto market, I’ve observed that for several weeks, Bitcoin has been bouncing between the support level of $60,000 and the resistance level of $63,000. This price range has provided an opportunity for investors to buy back in, particularly institutional and large-scale investors who sold close to the all-time high.
As a researcher studying the cryptocurrency market, I’ve noticed that July often brings positive price action for Bitcoin. On its first day, Bitcoin saw a gain of 1.8%, reaching a value of $62,663. The broader crypto market also experienced growth, with altcoins bouncing back notably.
The cost of Ethereum rebounded to reach $3,455, fueled by the excitement surrounding the approval of the spot Bitcoin ETF. On the other hand, Solana appears poised for a surge beyond $150, but its value was recorded at $146 on Monday.
How To Navigate Bitcoin Price Double-Bottom Pattern
The double-top pattern on the daily chart, a significant bullish formation, is strengthening and could lead to a potential price increase of up to 20%. It’s crucial to maintain the support levels between $60,000 and $58,844, previously tested in May and June. These levels should be vigilantly defended to maximize the benefit from this bullish pattern.
The purple line representing the 200-day Exponential Moving Average (EMA) supports the notion of buyer congestion, implying a strong probability for a bullish trend.
After the sell-off in June, the subsequent accumulation should result in BTC reaching and possibly surmounting the resistance around $70,000 at the neckline. For this bullish pattern to be confirmed, buyers need to overcome this challenge, which could lead more investors to purchase slightly above $70,000 and anticipate a breakout toward a new peak of $84,500.
Traders are seeking a bullish signal in the near term, which can be achieved if Bitcoin manages to surpass its current position above the 20-day Exponential Moving Average (EMA) priced at $63,060 and subsequently overcome the 50-day EMA, valued at $65,015.
Based on the RSI’s neutral reading of 36 following last week’s descent into oversold territory, the most likely direction for prices is upward.
If we’re unable to advance past this densely packed region, it’s possible that we may encounter more stagnation between $60,000 and $63,000. Additionally, a potential sell-off may ensue if the support at these levels weakens, causing further declines towards prices below $60,000.
Factors Propping BTC For $70,000 Bound Rally
The past few days have seen a significant increase in investments into Bitcoin spot ETFs, with a total of $73.05 million flowing in on Friday based on SoSoValue’s data. Among all the ETFs in the market, BlackRock’s has been the top performer, amassing a net inflow of a staggering $18 billion since its debut in Q1.
As an analyst, I’ve observed a considerable decrease in outflows from Grayscale’s GBTC in recent times. However, it’s important to note that last Friday, the ETF experienced $27 million in net outflows.
The significant increase in trading volume for Bitcoin ETFs has grown crucial to the current market surge, significantly boosting investor confidence. If more investors choose to invest further in these groundbreaking financial instruments, experts predict that the price of Bitcoin could reach as high as $70,000 or even $84,500.
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2024-07-01 16:35