Bitcoin (BTC) price has been on a downward trend over the past two weeks, with analysts believing the pioneering cryptocurrency has “bottomed” between $63,000 and $65,000.
“Bitcoin has likely bottomed in this region between $63,000 and $65,000,” MN Capital founder Michaël van de Poppe wrote in a post on the X social media network on June 20.
Van de Poppe’s analysis appears to be based on Bitcoin’s slight rebound from $64,950 to a high of $66,455 during the European trading session on June 20.
The analyst shared the following chart with X number of followers: This shows BTC breaking away from key demand levels ranging from $63,000 to $65,000, indicated by a green band.
Van de Poppe explained that if prices remain above this level, “they will have upward momentum.”
“A twist is just around the corner.”
Fellow analyst Jelle shared similar sentiments, noting that BTC continued its fight for the lower range around the key support level of $65,000, with the bulls shifting the market structure to lock in “regional higher lows and higher highs.” He declared that he is working hard to do so.
“Bitcoin’s domestic market structure is slowly returning to strength. We are looking at the recovery of $66,000 – to check our strength,” Jelle explained.
The 200-day EMA provides the last line of defense for Bitcoin price.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin’s price action has formed a series of higher lows on the daily chart, remaining above the rising trend line. Bitcoin bulls need to keep the price above this level to ensure a recovery.
The appearance of a Doji candlestick on the daily chart hinted at the importance of the $65,000 level for both buyers and sellers.
However, if the bulls lose the ongoing battle, it could lead to a retreat towards BTC’s last line of defense – the 200-day exponential moving average (EMA) at $64,300.
Data from IntoTheBlock also reinforces the importance of this level, showing that the Bitcoin price has relatively strong downward support via the In/Out of the Money Around Price (IOMAP) model.
The 200-day EMA and the psychological level of $65,000 are found within the $64,018-$65,975 price range, with approximately 1.07 million BTC previously purchased by approximately 1.75 million addresses.
This suggests that the high demand-side liquidity of this group of investors could push the price of BTC beyond the resistance provided by the 100-day and 50-day EMAs at $66,699 and $67,000, respectively, breaking the consolidation and entering price discovery.
If this happens, it could be the last time BTC prices go below $70,000, according to popular analyst Mustache.
Mustache explained that BTC price is creating an inverse head-and-shoulders pattern on the daily time frame, which is becoming “more and more of a reality” for Bitcoin.
The inverted head-shoulders pattern forms an inverted setup and involves an “inverted” head and shoulders, with the left and right shoulders inverted below the neckline.
If this pattern continues, the Bitcoin price could embark on a massive rally towards the next major price level of $72,000, potentially breaking the current all-time high of $73,835 and eventually breaking $100,000, says Jelle.
That’s a nearly 55% increase from current prices, according to CoinMarketCap data.
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.