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June 22, 2024
Market Analysis

Bitcoin Bull Market Resumed or is the Push to $65K a Trap? (BTC Price Analysis)

After an prolonged interval of sideways consolidation, Bitcoin witnessed a downtrend, breaking under the numerous assist zone of $59K.

Nonetheless, a notable bullish rebound close to the 100-day MA suggests the potential for a resurgence in shopping for strain.

Technical Evaluation

By Shayan

The Day by day Chart

Upon a complete evaluate of the day by day chart, it turns into evident that Bitcoin underwent an prolonged section of sideways consolidation throughout the pivotal worth vary of $59K to $72K.

The current worth motion noticed a decline, breaching the decrease boundary of this vary and the 100-day shifting common. This bearish motion resulted within the liquidation of many lengthy positions, resulting in a cooling-down interval within the perpetual markets.

Nonetheless, Bitcoin discovered important assist at an important zone, the 0.618 ($59,395) Fibonacci retracement stage, aligned with the important 100-day shifting common at $59K. This area sparked a bullish reversal, elevating expectations for a renewed optimistic development within the mid-term.

Nonetheless, a sudden breach under the essential $59K stage might set off one other notable downward motion towards the $56K threshold.

Supply: TradingView

The 4-Hour Chart

Analyzing the 4-hour chart reveals heightened promoting strain after Bitcoin did not surpass the $68K threshold. This led to a noticeable downtrend, breaking under the decrease trendline of the wedge, hovering round $59K.

Following this breach, quite a few lengthy positions had been liquidated, leading to a major plummet and a fast check of the $56K stage. Nonetheless, the value swiftly rebounded, retracing above the wedge’s decrease boundary and the $59K assist area.

Presently, BTC is getting ready to reclaiming its earlier day by day swing excessive of $65K. If profitable, the bullish development in the direction of the $68K mark is prone to proceed within the brief time period.

Supply: TradingView

On-chain Evaluation

By Shayan

The accompanying chart showcases the Bitcoin Brief-Time period Holder (STH) Realized Worth metric, an important indicator typically utilized to determine assist and resistance areas within the chart.

This metric calculates the typical short-term realized worth, encompassing transactions occurring inside a span of lower than 155 days. It’s derived by dividing the realized cap by the whole coin provide, offering a weighted common worth primarily based on what short-term holders paid for his or her cash.

In the course of the bullish run, this metric has persistently served as strong assist for the value on a number of events. Following the current decline in Bitcoin, the value reached this pivotal stage and located assist, triggering a bullish rebound. Nonetheless, it’s crucial to notice that ought to the value breach under this essential dynamic assist, the market might doubtlessly expertise a major downturn.

Nonetheless, the general development stays bullish so long as the value stays above the short-term members’ realized worth. This metric continues to be a key consider assessing market dynamics and anticipating potential worth actions within the brief time period.

Supply: CryptoQuant
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Cryptocurrency charts by TradingView.

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