Bitcoin (BTC) continues to be in a deadlock as its price remains steady, with a cryptocurrency trading expert pinpointing a specific chart level that could give the advantage to bears if breached.
In a recent post on TradingView, analyst TradingShot highlighted the significance of the one-day moving average 50 (1D MA50) at approximately $65,000 as a crucial support level for Bitcoin at this moment.
The analyst emphasized the importance of this level holding to prevent further declines. Should Bitcoin break below this level, it could potentially retest the $60,000 support area.
This analysis is in line with historical price movements. Notably, TradingShot drew comparisons to a previous pattern observed from April 8 to 19, characterized by a descending channel.
Following a bearish breakout during that period, Bitcoin faced resistance right at the 1D MA50, confirming a downtrend towards the $60,000 price target.
The expert also pointed out that Bitcoin faced rejection at the four-hour moving average 50 (4H MA50) on June 11, leading to a pullback that is now approaching the 1D MA50. This support level played a crucial role earlier in the week by supporting Bitcoin’s price. However, breaching this support now could lead to potential trouble.
Bitcoin has seen minor losses in the short term, with investors expecting further corrections. The recent drop below the $68,000 mark was triggered by significant net outflows of $226.21 million from U.S. spot exchange-traded funds (ETF) in a single day.
Furthermore, concerns have arisen in the market regarding a potential cap on Bitcoin’s upward potential due to miners’ cash requirements. Miners are reportedly selling at a high rate, hinting at a possible Bitcoin price capitulation in the near future.
Despite a brief surge from $68,000 to $70,000 on June 12 following a less-than-anticipated May U.S. Consumer Price Index (CPI), gains were swiftly wiped out after the Federal Open Market Committee (FOMC) revised its rate cut forecast for the year.
In the midst of uncertainty, Bitcoin is currently valued at $67,105, showing a slight daily correction of around 1%. On the weekly chart, BTC has experienced losses of nearly 6%.
Please note that the information provided in this article should not be considered as investment advice. Investing in cryptocurrencies is speculative, and there are risks involved.
