BTCs Support Level Indicates Buying Opportunity Worth Monitoring closely
As Bitcoin’s price movements are closely watched by the crypto market, there are potential opportunities for investors to explore, according to a recent analysis by trading expert TradingShot.
In a post on TradingView on June 7, TradingShot highlighted a medium-term pattern that aligns with Bitcoin’s long-term bullish trend, despite the recent short-term market excitement. The analysis provided insights into potential buying opportunities based on historical price patterns and technical indicators.
The critical support level identified for potential buying opportunities is within the range of the 50-day moving average (MA50) and the bottom of the green rectangle. This range, known as the “buy zone,” suggests a potential accumulation phase for investors looking to accumulate Bitcoin.
Since December 2022, Bitcoin has been following a dominant “Channel Up” pattern, experiencing its first major correction through an accumulation phase. The support found during this phase led to a price increase, even after briefly dipping below MA50 and nearing the 100-day moving average (MA100).
TradingShot suggested that Bitcoin might currently be at a ‘hammer’ rejection level around $71,100, similar to a previous price movement observed in July 2023. The Relative Strength Index (RSI) patterns during these phases indicate potential buying opportunities.
Bitcoin is currently in a consolidation phase, with both bulls and bears influencing its price direction. The focus is on whether Bitcoin can surpass the $70,000 mark and break out towards new all-time highs.
Crypto trading expert Michaël van de Poppe also noted on June 7 that Bitcoin is primed for a breakout in search of a new high, as it remains within a trading range. He highlighted a rejection at the $71,600 level, suggesting a potential breakout in the near future.
At the time of writing, Bitcoin is trading at $69,340, with a slight correction in the past 24 hours. Despite the consolidation, technical analysis shows a bullish sentiment, with indicators pointing towards a potential buy opportunity.
As Bitcoin remains in a consolidation phase, the next price action will be determined by the interplay between bulls and bears as they strive to push the asset towards new highs.