Bitcoin is struggling to shake off its weakness, judging by its performance over the past few trading days. After the June 24 crash, the overall sentiment was bearish, and sellers are likely to double down, wiping out the gains made over the last two days.
In the current situation, the sale of 4,000 BTC by the US government is a blow to buyers. This comes hours after the German government dumped thousands of BTC earlier this week, forcing prices lower.
Bitcoin Trends in Oversold Territory
One analyst is sanguine even amid this sense of anxiety in the cryptocurrency and bitcoin markets. Referring to the pattern of the RSI indicator, a tool for measuring momentum, the analyst is convinced prices may boost significantly in the future.
Bitcoin is at its lowest overbought level in over 300 days at spot rates. This pattern is reminiscent of a similar situation in 2023, when prices were stuck below $30,000.
As BTC reached oversold levels, prices rebounded strongly, breaking through the $50,000 level and reaching an all-time high in the coming months until March 2024.
Bitcoin has so far found itself in oversold territory after consolidating for about three months after reaching a high in March 2024. Prices then rose as high as $73,800 before falling sharply, reaching $56,500 by May 2024. Although prices rose to reach the next ceiling at $72,000, the path of least resistance in the compact term leads towards the bear market.
Bitcoin is testing the lower end of its horizontal range for the fifth time since March. For the bulls to take control, prices need to stay above the $56,500 and $60,000 zones for the bullish bias to remain.
However, a confirmed break below the low of the range could cause the BTC price to drop to as much as $50,000-52.
Will BTC bounce higher? Capital flow to discover ETFs
Another analyst as well expects price boost, emphasizing the importance of the bull market support band. Sharing data on X, the analyst stated that this support band served as a reliable charging zone in the previous bull cycle.
Its successful defense in January 2024 sets a positive precedent. At the same BTC level, the probability of a refreshing bounce is high, which provides a glimmer of hope.
Despite the recent price decline and days, if not weeks, of fund outflows, interest in spot Bitcoin Exchange Traded Funds (ETFs) is growing.
On June 26, the value of these products was $21.5 million. Fidelity and Grayscale recorded proceeds from this, according to SosoValue data.
Feature image from DALLE, chart from TradingView
