Bitcoin (BTC) returned to $62,000 on June 25 as the market slowly recovered its losses by the opening of the week.
As the market rebounds, BTC price tests the 200-day trendline.
According to data from Cointelegraph Markets Pro and TradingView, BTC price strength is showing a tentative recovery after the opening bell on Wall Street.
Bulls struggled as a trip to the previous day’s seven-week low of $58,500 triggered a series of capitulations.
Bitcoin’s Relative Strength Index (RSI) reading on a four-hour basis hit its lowest level since August 2023. This is also the last time BTC/USD abandoned a bull market support line such as the short holder total cost basis.
Popular trader Daan Crypto Trades confirmed in one of its latest updates on
“Yesterday was the largest day of Bitcoin net selling in over a year. RSI levels have also reached levels not seen in over a year.”
Total BTC buy liquidation on June 24 was just under $150 million, according to data from monitoring resource CoinGlass.
“There was a massive liquidity area of $65,000 and it continued to that point,” Daan Crypto Trades said.
“I think it will be a good level to set some short-term goals and see what the market looks like by then. Invalidation loses ~59K of low range.”
Stories continued to circulate about the psychological, if not physical, effects of the Mt. Gox bankruptcy proceedings.
“We believe there will continue to be selling pressure in the market as the market tries to digest the impact of 140,000 BTC on the market and price,” trading firm QCP Capital said in part of its latest update to its Telegram channel subscribers on this topic. I wrote about it.
“Existing Mt Gox creditors will not be hedged given the cost of holding criminal and option positions over an extended period of time.”
QCP noted that BTC price has bounced near its 200-day exponential moving average (EMA), which is currently almost exactly at $58,000. The last time BTC/USD traded below that trendline was in October.
Bitcoin rivals the US dollar
Nonetheless, fellow trader Skew warned of the continued strength of the US dollar, which is traditionally a headwind for risk assets and cryptocurrencies, and suggested this would persist in the near term.
However, Matthew Dixon, CEO of cryptocurrency valuation platform Evai, applied Elliott Wave Theory to the US Dollar Index (DXY) and argued that the picture is bearish inversely to a strong dollar.
“DXY’s valid 5 waves is a very promising signal for BTC and cryptocurrencies,” he said of the 15-minute chart.
“Now, if we get a three-wave retracement (ideally around the 0.618 Fib), we expect at least five more waves to fall, pushing risk assets further higher.”
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.