Cointelegraph by William Suberg
2024-06-07 03:30:00
cointelegraph.com
Bitcoin (BTC) stuck rigidly to $71,000 into June 7 as analytics tools began to call for a retest of lower levels.
Bitcoin bulls “save” daily close after exchange sell-off
Data from Cointelegraph Markets Pro and TradingView showed BTC price action bouncing higher after hitting intraday lows of $70,120 on Bitstamp before the daily close.
The latest moves continued a theme throughout the week with trips toward resistance below all-time highs and heavy downside wicks. Another such wick on June 5 took BTC/USD to $69,600 before a rebound set in.
Commenting, trading resource Material Indicators suggested that markets were now calling for a more demonstrative return to key support around $69,000.
“Both Trend Precognition algos are showing new #TradingSignals indicating that it may be time to retest local support,” it wrote about signals from its proprietary trading indicators in a post on X (formerly Twitter).
“For me, a move back to $71.6k invalidates, and a hot Unemployment Report in the morning could be a catalyst for a move like that.”
Material Indicators co-founder, Keith Alan, added that he would be “very happy” to see $69,000 — a significant psychological line in the sand — get tested as part of a resistance/support flip by bulls.
“With the 21-Day Moving Average hovering around $68.8k technical support is strong, but a cooler than expected Unemployment Report or a rug pull could send prices lower and punish late longs,” he concluded.
Allen referenced upcoming United States macroeconomic data on unemployment, this often known to have a noticeable impact on BTC price volatility.
During the June 6 U.S. trading session, meanwhile, popular trader Skew noted considerable BTC sales from major exchanges Binance and Coinbase.
On Coinbase alone, Skew noted, 2,000 BTC was sold, as he queried “who’s cashing out $100M +.”
Bulls nonetheless provided a lifeline in time for the daily close, avoiding a continuation of “weakness” that Skew warned could have longer-lasting consequences for the BTC price trend.
BTC price “heavily ready” for breakout
Zooming out, Michaël van de Poppe, founder and CEO of trading firm MNTrading, said that Bitcoin had yet to break out from its established range — even with its latest signs of strength.
Related: Why isn’t the BTC price moving despite billions in ETF inflows?
“Bitcoin is still stuck within the range, but very heavily ready for a breakout upwards to a new all-time high,” he summarized on X.
“Slowly, but surely, the altcoins are rolling along. It’s a good time.”
Alan meanwhile placed the responsibility for slow progress toward all-time highs with whales. These large-volume investors, he argued, were deliberately holding the market back in order to protect their short positions.
In one of his latest X responses, Alan described “a heap of shorts” between $71,500 and $75,000, with whales “suppressing price to avoid getting liquidated.”
The latest data from monitoring resource CoinGlass meanwhile showed $71,900 as the most interesting nearby focus for liquidity above spot price at the time of writing.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
