Bitcoin is struggling to shake off the weakness, judging by its performance in recent trading days. After the June 24 dump, overall sentiment was bearish and sellers are likely to double down, wiping out the gains of the past two days.
As things stand now, the US government’s sale of 4,000 BTC is a dent for buyers. It comes hours after the German government dumped thousands of BTC early this week, forcing prices to fall.
Bitcoin trending in oversold territory
One analyst is optimistic even despite this sense of unease in the crypto and Bitcoin markets. The analyst quotes the formation in the RSI indicator, a tool for measuring momentum convinced prices could recover strongly in the future.
Bitcoin is at its lowest overbought level in more than 300 days at spot prices. This formation reflects a similar situation in 2023, when prices were stuck below $30,000.
Once BTC reached oversold territory, prices rebounded sharply, breaking above $50,000 and reaching all-time highs in the coming months through March 2024.
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So far, Bitcoin is in oversold territory, having consolidated for about three months after peaking in March 2024. Prices then shot to $73,800 before falling sharply to $56,500 in May 2024. Although prices have recovered, found a new ceiling of $72,000. the path of least resistance in the short term is bearish.
Bitcoin is testing the lower limit of its horizontal range for the fifth time since March. For the bulls to take control, prices must remain above the $56,500 and $60,000 zones, otherwise the bullish bias will persist.
However, a confirmed breakdown below the low range could cause the BTC to crater to a low of $50,000-$52.
Will BTC Bounce Higher? Capital flow to spot ETFs
Also another analyst expected prices will recover, highlighting the importance of the bull market’s support band. The analyst shares on
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Its successful defense in January 2024 sets a positive precedent. Now that BTC is at par, the chances of a refreshing bounce are high, offering a glimmer of hope.
Despite the recent price drop and days, if not weeks, of outflows, interest in Bitcoin Exchange Traded Funds (ETFs) is increasing.
As of June 26, there were $21.5 million in these products. Fidelity and Grayscale saw an influx from this, according to SosoValue facts.
Feature image of DALLE, chart from TradingView
