Bitcoin Maintains Stronghold Above $60,000 Amidst Tug of War Between Traders
Following a minor dip on June 24, the price of Bitcoin (BTC) is stabilizing above the key psychological level of $60,000.
Despite the volatility, the long candlestick tail observed on June 24 indicates significant buying pressure at lower levels. Currently, the largest cryptocurrency is consolidating within a tight range of $60,000 to $63,000, with bulls and bears fiercely competing for control over prices.
If the bearish trend gains momentum and the support level of $60,000 is breached, Bitcoin could potentially plummet to as low as $56,710, eventually aiming for the psychological threshold of $50,000.
On the other hand, if buyers manage to sustain the price above the moving average lines and break the resistance level at $66,000, Bitcoin will resume its upward trajectory.
Analyzing the 4-hour chart, it can be observed that BTC has been trapped between the moving averages for the past 48 hours. The bears have successfully breached the 21-day SMA, implying the possibility of increased selling pressure. If the bears manage to breach the psychological price level, the cryptocurrency’s value could further decline.
Key resistance levels for Bitcoin are identified at $70,000 and $80,000, while key support levels lie at $50,000 and $40,000.
Considering the current market conditions, Bitcoin’s immediate future appears to be trading within a narrow range of $59,000 to $62,000. Presently, it is hovering in the middle of this range, remaining above the crucial support level at $60,000. However, failure to hold onto this support could result in further downside movement for Bitcoin.
It is worth noting that Bitcoin recently lost critical support at $64,000, leading to a drop to a low of approximately $58,555, as reported by Coinidol.com on June 27.
Disclaimer: The above analysis and forecast represent the personal opinions of the author and should not be considered as an endorsement or recommendation for cryptocurrency trading. Readers are advised to conduct their own research and exercise caution when investing in digital assets.