- The outreach activities of April and May once again gained publicity.
- The bulls could falter in the coming days and cede the $60k level to the bears.
Bitcoin [BTC] recorded a loss of 7.84% on Monday, June 24. A previous AMBCrypto report highlighted that news developments surrounding Mount Gox’s redemptions could increase selling pressure on Bitcoin.
The same report also noted that a sudden, sharp drop in prices could be imminent. A few hours later, BTC fell to $58.4k before rebounding slightly and trading at $61.1k at the time of writing.
Will the support zone also be defended this time?
Range formation could be the key
Source: BTC/USDT on TradingView
On Sunday, June 16, Bitcoin rose from $66k to $66.9k, once again testing the range highs as resistance. Since then it has trended down and was near the low of $59.7k. BTC is expected to recover at the $59,000-$60,000 support zone.
The daily RSI supported this idea. On Monday the price fell to 25.6, but at the time of writing it was still 30.38. Therefore, the chances of recovery are increased because the RSI exceeds 30.
However, the OBV was in a strong downtrend, reflecting the intense selling pressure over the past two weeks. This trend must be stopped and reversed before the bulls regain their confidence.
The liquidation heatmap showed that traders could experience more pain
While the $59,000 region has been a strong demand zone, it may not be enough to halt bearish pressure. AMBCrypto’s analysis of Hyblock’s liquidation data showed that we are likely to see another 10% price drop in BTC soon.
Read Bitcoin’s [BTC] Price forecast 2024-25
The six-month lookback chart showed a high concentration of long liquidations around $55,000. It will likely act as a magnetic zone and pull prices towards it before the uptrend can resume on a higher time frame.
Traders and investors don’t need to sell right away, but a visit to the $55k region could provide a buying opportunity rather than causing panic.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.