Bitcoin’s upward momentum could be in jeopardy if it closes below $56,500 by the end of June, according to a recent warning on BTC price trends.
Material Indicators, a trading resource, pinpointed a critical threshold for Bitcoin bulls in their market analysis on June 26th. The lows observed in May now represent a pivotal level that could determine Bitcoin’s future price trajectory. As BTC/USD hit its lowest points since May earlier this week, market participants are closely monitoring these levels.
Market analysts at Material Indicators anticipate mounting pressure in the week ahead, particularly with significant weekly, monthly, and quarterly closures aligning on the same day. If bearish sentiment dominates, the $56,500 mark, seen seven weeks ago, will serve as a vital support level that buyers must defend.
Keith Alan, the co-founder, expressed optimism about Bitcoin’s recovery from a recent downturn. He shared a chart from Material Indicators’ trading tools, indicating a positive outlook for Bitcoin’s price performance.
In a separate update, Alan raised concerns about potential market manipulation in the form of “spoofing,” where large-volume traders artificially adjust liquidity levels to influence prices. With key events like the Presidential Debate, new inflation data releases, and various candle closes occurring on Sunday, Alan predicts heightened volatility in the market.
Analyzing order book liquidity on Binance, the largest global exchange, Alan observed strengthened bid support in the range between the current spot price and $55,000, forming a supportive “ladder” structure.
Bitcoin traders are closely monitoring the Relative Strength Index (RSI), noting the coin’s “overbought” status since August 2023. RSI levels on multiple timeframes have historically signaled market bottoms, a pattern that hasn’t escaped the attention of traders.
Daan Crypto Trades highlighted the movement of coins from heavily oversold 1-day RSI levels back towards an average of around 36, indicating a potential rebound for Bitcoin. The daily RSI for Bitcoin currently stands at 34.2, as reported by Cointelegraph Markets Pro and TradingView.
It’s important to note that this article is not intended as investment advice. All investment decisions involve risks, and readers are encouraged to conduct their own research before making any financial decisions.