Bitcoin
is
struggling
to
shake
off
weakness,
judging
by
its
performance
in
the
last
few
trading
days.
After
the
dump
on
June
24,
the
overall
sentiment
has
been
bearish,
and
sellers
will
likely
double
down,
wiping
gains
posted
in
the
last
two
days.

As
things
stand,
the
sale
of
4,000
BTC
by
the
United
States
government
is
a
dent
for
buyers.
It
comes
hours
after
the
German
government
dumped
thousands
of
BTC
early
this
week,
forcing
prices
to
lower.

 

Bitcoin
Trending
At
Oversold
Territory

One
analyst
is
upbeat
even
amid
this
sense
of
unease
across
the
crypto
and
Bitcoin
markets.
Citing
formation
in
the
RSI
indicator,
a
tool
for
gauging
momentum,
the
analyst
is

convinced

prices
could
recover
strongly
going
forward.

Bitcoin
is
at
its
lowest
overbought
level
in
over
300
days
at
spot
rates.

This
formation
echoes
a
similar
situation
in
2023
when
prices
were
stuck
below
$30,000.

Once
BTC
swung
to
the
oversold
territory,
prices
rebounded
strongly,
breaking
above
$50,000
and
reaching
an
all-time
high
in
the
coming
months
through
March
2024.

Related
Reading

Thus
far,
Bitcoin
finds
itself
in
the
oversold
territory
after
consolidating
for
roughly
three
months
after
peaking
in
March
2024.
Then
prices
shot
to
as
high
as
$73,800
before
dumping
sharply,
reaching
$56,500
by
May
2024.
Though
prices
have
recovered,
finding
another
ceiling
at
$72,000,
the
path
of
least
resistance
in
the
short
term
is
bearish.

 

Bitcoin
is
testing
its
horizontal
range’s
lower
boundary
for
the
fifth
time
since
March.
For
bulls
to
take
charge,
prices
must
hold
above
the
$56,500
and
$60,000
zones
for
the
bullish
bias
to
remain.

However,
a
confirmed
breakdown
below
the
range
low
might
see
BTC
crater
dropping
to
as
low
as
$50,000-$52.

Will
BTC
Bounce
Higher?
Capital
Flow
To
Spot
ETFs

Another
analyst
also

expects

prices
to
recover,
emphasizing
the
importance
of
the
bull
market
support
band.
Sharing
on
X,
the
analyst
said
this
support
band
has
served
as
a
reliable
loading
zone
in
the
past
bull
cycle.

Related
Reading

Its
successful
defense
in
January
2024
offers
a
positive
precedent.
With
BTC
at
the
same
level,
the
probability
of
a
refreshing
bounce
is
high
on
the
cards,
providing
a
glimmer
of
hope.

Despite
the
recent
price
decline
and
days,
if
not
weeks,
of
outflows,
interest
in
spot
Bitcoin
exchange-traded
funds
(ETFs)
is
increasing.

 

On
June
26,
there
was
$21.5
million
into
these
products.
Out
of
this,
Fidelity
and

Grayscale
saw
inflows,
according
to
SosoValue

data.

Feature
image
from
DALLE,
chart
from
TradingView

Go to Source
Author: Dalmas Ngetich

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