CoinDesk analyst and Chartered Market Technician Omkar Godbole provides this daily market insight.
The recent rebound in Bitcoin’s price, following a significant drop last Friday, has been lackluster. This leaves the cryptocurrency perilously close to a critical support area, which could be pivotal for future price movements.
After plummeting to nearly $105,000 on several platforms during Friday’s downturn, Bitcoin managed to climb back up to $116,000. However, as expected by many analysts, this recovery was short-lived. The price soon slipped back towards the $110,000 mark amid bearish signals from key momentum indicators.
BTC is hovering near a crucial support level. (TradingView/CoinDesk)
The daily candlestick chart reveals that the range between $107,000 and $110,000 serves as an essential support zone. This area is marked by intraday highs from December through January and lows observed in September. The intersection of these levels indicates that neither bulls nor bears have managed to dominate here consistently; thus it remains a critical point of contention within the market dynamics. Furthermore,the 200-day simple moving average (SMA) currently resides around $107500.
This brings us to an important consideration: what if prices break below this vital support zone? Such an event would suggest sellers gaining dominance potentially leading Bitcoin into deeper correction territory.
If such breakdown occurs first notable level providing potential buffer could be at $98330 recorded low on June 22nd further decline might target lower boundary ascending channel approximately $82000.
Cautionary Indicators Suggesting Potential Decline
Recent activity within well-defined bullish channel formed connecting higher lows since October 2023 alongside parallel trendline extending March high suggests possible overbought conditions signaling room for more substantial pullback.
Bitcoin’s upward trajectory since early 2023 has largely been steady contained within parallel channel sloping roughly forty-five degrees indicating sustainable growth pattern so far however recent weeks have seen repeated attempts breach upper limit suggesting moments excessive optimism or overbought state these instances quickly corrected themselves indicating buyer fatigue setting stage possible further declines ahead
A closer look reveals repeated failures establish lasting presence above upper boundary during December-January period eventually paving way sharp descent reaching approximately seventy-five thousand dollars
BTC’s daily chart analysis shows ongoing trends (TradingView/CoinDesk)
Nevertheless traders should remain vigilant observing any bounce occurring around crucial $107k-110k region strong recovery combined with swift invalidation lower highs via move beyond $116k may propel BTC towards challenging previous record peaks once again ...!!!!)&semi&colon