Bitcoin stands at a crucial juncture in terms of its price. The average price of Bitcoin across three different time frames has now converged, indicating the possibility of a significant price movement.
Real Vision’s chief crypto analyst, Jamie Coutts, highlighted the convergence of Bitcoin’s average price across three short-term periods, which have all fallen within a 5% range. Coutts referred to this as “coiling pricing action” and noted that it triggered his Bitcoin Trend model.
On June 4, the convergence of the simple moving average (SMA) was observed across three different periods: the five-day, 30-day, and 50-day periods. The average price within these intervals ranged between $65,000 and $68,239. This low volatility over an extended period of time often raises hopes for a potential breakout, although it can also result in a price retrace.
Bitcoin is currently classified as a “Strong buy” according to TradingView’s moving average indicator, which considers both the SMA and the exponential moving average. As of now, Bitcoin is trading above the three SMAs at $70,840, suggesting that the moving average could act as a support level if the price declines.
On the same day, Bitcoin briefly reached $71,040 before retracing. This price level is significant as traders are closely watching it as the next step towards reaching its all-time high of $73,679.
Over the past 30 days, Bitcoin has remained above its key support level of $60,000. However, it fell short of reaching $72,000, peaking at $71,946 on May 21.
Despite the uncertainty surrounding Bitcoin’s breakout direction, Coutts emphasized the alarming increase in the number of US banks at risk of collapse during the first quarter of 2024. The US Federal Deposit Insurance Corporation (FDIC) reported a 21% jump in the number of banks on the “Problem Bank List” during this period, reaching a total of 63 banks. Coutts also noted that Bitcoin’s price experienced a significant surge after the collapse of three banks in March 2023.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.