Bitcoin’s Sub-$70K Days Limited, Traders Predict Bottom

Bitcoin’s (BTC) price has witnessed a downward trend over the past two weeks, sparking discussions among analysts about whether the pioneer cryptocurrency might have reached its bottom. Prominent analyst Michaël van de Poppe, founder of MN Capital, recently suggested that Bitcoin seems to have “bottomed” between $63,000 and $65,000. In his analysis from June 20, van de Poppe noted that this level appears to be a crucial zone for BTC.

Van de Poppe’s observation was influenced by Bitcoin’s minor rebound from $64,950 to $66,455 during the European trading session on June 20. He reinforced his point with a chart shared on social media, illustrating Bitcoin bouncing off a key demand level in the green band between $63,000 and $65,000. Van de Poppe emphasized that maintaining above this region could propel Bitcoin into an upward trajectory, hinting that a market reversal might be imminent.

Another analyst, Jelle, echoed this viewpoint, maintaining that Bitcoin continued to hold its ground near the pivotal $65,000 mark. The bulls, Jelle pointed out, are striving to pivot the market structure, aiming to secure a “local higher low and higher high.” Jelle stressed that reclaiming the $66,000 level would solidify signs of strength, shifting the market sentiment back to bullish.

Data from Markets Pro and TradingView further support this sentiment, as Bitcoin’s consistent higher lows on the daily chart have kept it above the ascending trendline. For the bullish trajectory to persist, it is essential that Bitcoin sustains its price above this trendline. The presence of a doji candlestick on the daily chart underscores the critical nature of the $65,000 level for both buyers and sellers in this battle.

Should the bulls falter, Bitcoin might fall back to the 200-day Exponential Moving Average (EMA), the final defensive line currently around $64,300. Insight from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model also highlights robust support near this level, cementing its importance in the ongoing price stability battle. The combined influence of the 200-day EMA and the psychological $65,000 level provides substantial support between $64,018 and $65,975.

In this price range, a significant volume of Bitcoin—approximately 1.07 million BTC—was previously purchased by around 1.75 million addresses. This cohort of investors might exert considerable demand-side liquidity that could nudge Bitcoin past the resistance levels marked by the 100- and 50-day EMAs at $66,699 and $67,000, respectively. Breaking through these EMAs may lead to price discovery beyond consolidation ranges.

Analyst Moustache has proposed that a rise above the $70,000 mark might be the last opportunity to buy BTC at such a price. Moustache’s analysis reflects that Bitcoin’s price is forming an inverse head-and-shoulders pattern on the daily chart—a classic indicator of a potential reversal. This pattern suggests that Bitcoin might be poised for an upward trajectory.

Should this inverse head-and-shoulders pattern materialize, Bitcoin’s price could experience a significant breakout towards the $72,000 mark. Upon achieving this milestone, BTC might surpass its current all-time high of $73,835, pursuing an even more ambitious target of $100,000, as per Jelle’s projections. This potential surge represents nearly a 55% increase from the current price level.

While Bitcoin’s recent price trends have caused concern, numerous analysts believe that critical support levels and emerging bullish patterns point towards a possible reversal. Maintaining above the $63,000 to $65,000 zone is crucial. If the bullish momentum holds, Bitcoin may not only recover but could also enter a period of substantial growth, potentially reaching new all-time highs.