The Bitcoin price bounced back to above $62,000 early this morning after dropping to its lowest point since early May. What’s next for the flagship crypto?
Analysts are monitoring the price closely to see whether the support level around $60,000 holds. If the Bitcoin price falls below $60,000, a “key support zone” exists between $55,000 and $58,000.
According to the latest TradingView data, the 200-day moving average indicates a buy at around $58,000. The relative strength index (RSI) is at 34, still in neutral territory but declining steadily. An RSI below 30 indicates an asset is oversold and expected to turn bullish.
According to a financial expert’s X post, Bitcoin’s daily RSI has not been this low in nearly a year, and the last time we saw oversold conditions was when Bitcoin was worth $26,000.
There are compelling reasons to anticipate Bitcoin’s price to break through the critical resistance level. Not only is it on the verge of being oversold, but there has also been significant selling in other crypto market segments, such as altcoins. This could pave the way for Bitcoin to surpass the resistance levels.
Bitcoin is trading for $61,574 at the time of writing. It has rallied above $61,000, which could mean it will not fall further.
At the same time, most moving averages suggest a sell. When technical indicators conflict, it could mean wavering market sentiment or a price consolidation.
The most crucial factor to monitor is the actions of investors and traders. Their willingness to pay higher prices and not just buy dips can significantly impact the market. If demand plummets once the price increases, a drop to $56,000 becomes very likely.
According to Tim Enneking, managing partner of Psalion, the upside will face strong resistance around $63,000 and $67,300. He expects Bitcoin to oscillate between the low $60s and high $50s for most of the third quarter of 2024, based on the aftermath of prior halving cycles.
Enneking warns traders not to let the ‘early’ ATH affect them too much because approval of the spot BTC ETFs in the US was the main cause of it. He claims the real Bitcoin bull market will be in 2025 based on prior halvings. This means we might expect a new ATH, a prospect that should excite and prepare traders for potential future growth.
