BTCs Support Level A Buying Opportunity to Keep a Close Eye On
As the cryptocurrency market closely watches Bitcoin’s next move and the potential to break the $70,000 barrier, a trading expert has identified some opportunities for investors to explore. In a recent post on TradingView, analyst TradingShot highlighted a medium-term pattern that aligns with Bitcoin’s overall bullish trend but contrasts with the recent short-term excitement in the market.
The analysis provided valuable insights into potential buying opportunities based on historical price patterns and technical indicators. According to TradingShot, the crucial support level for potential purchases falls within the range of the 50-day moving average (MA50) and the bottom of the green rectangle, known as the “buy zone” where investors may want to consider accumulating Bitcoin.
Since December 2022, Bitcoin has been following a dominant “Channel Up” pattern, with its first significant correction occurring within a rectangle pattern identified as an accumulation phase. During this phase, Bitcoin found support, formed a bottom, and began rising again after briefly dropping below MA50 and approaching the 100-day moving average (MA100).
TradingShot suggested that if a similar accumulation phase occurs, Bitcoin might currently be at a ‘hammer’ rejection level around $71,100, similar to the price movement seen around July 12, 2023. The Relative Strength Index (RSI) patterns during these phases are strikingly similar, indicating potential buying opportunities.
Currently, Bitcoin is in a consolidation phase, with both bulls and bears vying for control over the asset’s direction. The focus is on whether Bitcoin can reclaim the $70,000 mark. In another post on June 7, crypto trading expert Michaël van de Poppe acknowledged that Bitcoin is still range-bound, indicating that the leading cryptocurrency is poised for a breakout to reach a new all-time high.
Van de Poppe noted that Bitcoin recently rejected the $71,600 level, suggesting that investors should anticipate a breakout in the coming week. At the time of writing, Bitcoin was trading at $69,340, with a slight correction of less than 0.1% in the past 24 hours. Despite the consolidation, Bitcoin’s technical analysis remains bullish, with indicators suggesting a potential for a new all-time high.
In conclusion, as Bitcoin remains in its current position, the next move will depend on the battle between bulls and bears, as they determine the asset’s future price action. It is important to note that investing in cryptocurrencies is speculative and carries risk to your capital.
