Bitcoin is at a critical juncture price-wise based on the formation of the daily chart. As the battle between the bulls and bears progresses, it is clear that for now the sellers have the upper hand despite the recent price stability.
BTC Price Reaches Critical Price Level: Will Bulls Prevail?
As BTC bulls attempt to reverse last week’s losses, one analyst believes how the price reacts now will be crucial in the coming days, citing technical candlestick formations and a reaction at the 200-day moving average.
In X’s post, the analyst I got it. Following last week’s decline, the coin turned lower and closed below its 200-day moving average. This formation was significant.
For several months, this dynamic line has acted as key support, bolstering buyers throughout the last bull cycle from October to mid-March.
The rally continued, and although the level wasn’t retested until late June when prices were generally weaker, last week’s break was decisive.
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Though bearish, the analyst acknowledged that last week’s breakout was clear. However, as things stand, there is hope for the bears as the bear bar has not been confirmed.
For this to happen, the price would need to drop below $56,500 and then drop below last week’s low of $53,500.If this happens, it would officially prove that the bears are back and the sellers will likely continue to push the decline lower in a bearish trend continuation formation.
For Bitcoin to reverse, the price must reject last week’s decline, rise, and close above the 200-day moving average. This recovery could be a bullish signal that the uptrend for Q1 2024 will resume and the start of an uptrend.
For now, traders are keeping a close eye on the psychological line of $60,000 and ideally a close above $66,000, where Bitcoin may find momentum to retest the key liquidation level of $72,000.
Spot Bitcoin ETF Inflows in Focus
Amid the optimistic outlook, traders Looking Inflows into Bitcoin exchange-traded funds (ETFs) have been on the rise following continued selling pressure from the German government, which has further curbed the BTC rally and weakened its momentum.
If sellers persist and mirror recent trends, further outflows are likely and issuers of spot Bitcoin ETFs may record outflows.
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The downward trend accelerated over the past few weeks, particularly in June when prices fell, as major issuers such as BlackRock, Fidelity and Grayscale recorded outflows.
Featured image from DALLE, chart from TradingView
