Bitcoin could reach 60000 if crucial level is breached
Bitcoin (BTC) remains at a standstill as its price continues to consolidate, with a cryptocurrency trading expert pinpointing a key chart level that could benefit bears if breached.
In a recent post on TradingView, the analyst TradingShot highlighted the importance of the one-day moving average 50 (1D MA50) at approximately $65,000 as a crucial support level for Bitcoin.
The analyst emphasized the significance of this level in preventing further declines. Should Bitcoin break below this level, it may retest the $60,000 support area.
This analysis is consistent with past price movements. Notably, TradingShot drew comparisons to a previous pattern observed from April 8 to 19, characterized by a descending channel.
The expert pointed out that Bitcoin faced rejection at the four-hour moving average 50 (4H MA50) on June 11, leading to a pullback that is now approaching the 1D MA50. This level had previously provided strong support but a breach now could signal trouble.
Investors have been bracing for further corrections as Bitcoin recently dropped below the $68,000 mark following significant net outflows of $226.21 million from U.S. spot exchange-traded funds (ETFs) in a single day.
There are also concerns in the market regarding potential selling pressure from miners, which could indicate a forthcoming capitulation in Bitcoin’s price in the coming weeks.
Despite briefly surging from $68,000 to $70,000 on June 12 in response to lower-than-expected May U.S. Consumer Price Index (CPI) data, Bitcoin quickly erased those gains after the Federal Open Market Committee (FOMC) adjusted its rate cut forecast for the year.
Currently, Bitcoin is trading at $67,105, reflecting a minor daily correction of around 1%. On a weekly basis, BTC has experienced losses of nearly 6%.
It’s important to note that the information provided in this article should not be considered as investment advice. Investment in cryptocurrency is speculative and involves risk to your capital.