Bitcoin risks losing its overall gains if it ends June below $56,500, according to a new BTC price warning.
In a market report on June 26th, trading resource Material Indicators highlighted key lines for Bitcoin (BTC) bulls.
The low could be a rising or falling level for the BTC price.
BTC/USD hit its lowest level since early May this week. And that old low is now definitely gaining traction in the trading world.
Material Indicators expects market pressure to increase through the weekend, especially as weekly, monthly and quarterly closes all occur on the same day.
If the bears gain the upper hand, the $56,500 level from seven weeks ago would form the bottom of the bottom for buyers to defend.
“So far, Bitcoin appears to be recovering well from this week’s mini-flush,” co-founder Keith Alan said alongside a chart from one of Material Indicators’ proprietary trading tools.
“There is always the possibility that the price will revert to retest the lows before Sunday, but as long as the monthly candle closes in or above the red box, the trend will remain intact.”
In a separate post, Alan warned of “spoofing” that could occur in the coming days as he tracks order book liquidity. This refers to high volume traders artificially shifting liquidity between different levels in an attempt to influence price movements.
“With the presidential debate, new inflation data, and daily, monthly, quarterly and six-month candles all closing on Sunday, we expect more volatility through the end of the year,” he continued.
“As the week progresses, we are observing where liquidity is concentrated to identify the strongest areas of resistance and support. Beware of possible spoofing.”
Order book data from Binance, the largest global exchange, shows a ‘ladder’ of strengthening bid liquidity between the current spot price and $55,000.
Bitcoin traders were betting on an RSI rebound.
As Cointelegraph continues to report, the BTC/USD trading pair has experienced its most “overbought” conditions since August 2023.
Related: Are Bitcoin Exchange Balances ‘Overvalued?’ 140K BTC Mt. Gox Dividend Debate Sparks
Over various periods of time, these relative strength index (RSI) levels have historically served as bottom signals, a phenomenon that does not go away for market participants.
“The coin is reverting to an average of ~36 from the oversold daily RSI level,” popular trader Daan Crypto Trades said today.
“It’s still low and there’s a lot of room to grow, but the market needs Bitcoin and $ETH to lead, and altcoins will have a good time.”
At the time of writing, Bitcoin’s daily RSI was at 34.2, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.