Bitcoin Battling Bearish Headwinds: Is The Sell-Off Over?
June 27 2024 - 12:00PM
NEWSBTC
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: Solana Trading Plunges 93% In 24 Hours: Where Did
The $100 Billion Go? 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: Cardano (ADA)
Faces Further Decline, $0.3389 Support Under Threat 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
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