Following the fluctuations in the daily chart, the ground beneath Bitcoin has grown brittle. At present, it teeters on a precarious precipice. The ongoing struggle between the bullish and the bearish forces appears to be leaning in favor of the latter, despite the relative steadiness observed in the recent prices.
As we survey the scene, Bitcoin bulls are relentlessly striving to overturn the losses incurred in the prior week. According to one analyst’s critical interpretation of the technical candlestick formation and the reaction observed at the 200-day moving average, the course Bitcoin’s prices take at this junction would set the tone for the ensuing days.
The analyst had issued a post outlining the dip in Bitcoin as it dipped below the 200-day moving average subsequent to the losses posted last week, and underscored the significance of this formation. This dynamic trajectory has, over a span of months, served as a crucial anchor for the buyers, lending stability from October to the middle of March during the previous bull cycle.
Notwithstanding the sustained rally, this level was uncontested until late June at a time when the prices overall were languishing. However, the break that occurred in the past week was emphatically decisive.
Although bullish, the analyst admitted to the undeniable clarity of the break observed over the past week. Yet, they stated that there remained a glimmer of hope for bears in the absence of any confirmation through bear bars. For these bear bars to emerge, prices must plunge below the $56,500 level and descend further to roughly $53,500, thus marking the lowest point from last week. Should this event occur, it will undoubtedly signal the return of bears, and sellers stand poised to push towards a continued bearish trend.
Despite the undeniable requirement for Bitcoin to rebound, it becomes crucial for prices to resist the losses from last week and break higher, thereby closing above the 200-day moving average. This turnaround might potentially symbolize a bullish signal, stimulating a potential resurgence, and resuming the upward trend of Q1 2024.
For the time being, traders have their gazes fixed on the psychological line of $60,000 and ideally, a close above $66,000. If this were to happen, Bitcoin might gather enough momentum to retest $72,000, considered a vital line of liquidation.
Even in the face of budding optimism, trading activities are vigilantly scrutinized, particularly the inflow in spot Bitcoin exchange-traded funds (ETFs). This follows the ongoing sell-off by the German government, thus building pressure on Bitcoin, limiting gains, and stifling the upward momentum.
Persistent sellers following recent trends might paint the town red, leading to spot Bitcoin ETF issuers bearing the brunt by registering outflows.
Over the past few weeks, especially in June when prices teetered downwards, top issuers like BlackRock, Fidelity, Grayscale, and others had to deal with outflows, rapidly accelerating the downward trend.
