After enduring a steady decline in the first half of June, the Bitcoin price appears to have found support at the critical $25,000 level and the lower trendline of the wedge pattern. This resurgence in buying interest led to a 7% increase in market value within three days. The question now arises: can this upturn spark a sustained recovery that propels the price back to the $30,000 mark?
Currently, the Bitcoin price trades at $26,726 after three consecutive days of growth. A bullish crossover between the weekly 20 and 50 EMA presents a buy signal for interested traders. Nevertheless, the intraday trading volume in Bitcoin stands at $8.93 billion, signifying a 38% decline.
The weekly time frame chart reveals that the two monthly corrections in Bitcoin price are characterized by weak volume activity. The downward price trajectory, supported by low volume, signifies a lack of conviction from sellers, suggesting that buyers might eventually regain control of the trend. Furthermore, the correction phase remains above the 50% Fibonacci retracement levels, signifying a healthy pullback in the broader bullish trend. The current decline is governed by a falling wedge pattern; thus, a breakout above its resistance trendline would indicate a resumption of the previous recovery.
The Bitcoin price presently hovers around $26,700, and if buyers manage to close the daily candle above the trendline, potential investors can seize the opportunity for entry. This move could propel the price to reach $31,555. The weekly chart, displaying alternating red and green candles, implies a lack of dominance from sellers. Consequently, if market sentiment improves during the second half of June, the price might surpass the overhead trendline, potentially pushing the price to reach successive levels of $28,500, $29,800, and $31,155.
A few technical indicators may shed light on this situation:
1. Relative Strength Index: The weekly RSI slope remains above the 50% mark, suggesting a bullish market trend.
2. Exponential Moving Average: The BTC price dipped to the 20 EMA slope, which is the same level that spurred the mid-March recovery.
It is crucial to note that the information presented reflects the author’s personal opinion and is contingent on market conditions. Conduct thorough market research before investing in cryptocurrencies. Neither the author nor the publication assumes any responsibility for personal financial losses.
Source: Coingape
