Bitcoin is falling today to around $68,000, its lowest level since late March, while technical indicators continue to point to overwhelming selling pressure. The world's largest cryptocurrency is entering the historically weak summer season with a sharp decline that is also weighing on Ethereum and smaller digital assets. Yesterday, the market was additionally pressured by news that Strategy (MSTR.US) sold Bitcoin for the first time since 2022.
Bitcoin (D1 and W1 Interval)
Bitcoin's price action continues to signal weakness. On the daily chart, the cryptocurrency has broken below a triangle pattern, a development that may increase downside risks toward the local low near $60,000. A break below that support zone would strengthen the bearish case and could open the door to a deeper decline toward the $40,000 area, where several important on-chain metrics are located, including the Realized Price and the so-called Delta Price.
Source: xStation5
Source: xStation5
If the current correction were to replicate the previous cycle on a near one-to-one basis, the potential bottom could emerge around $45,000–47,000 per Bitcoin, potentially before the end of June. On the other hand, the Relative Strength Index (RSI) is already approaching oversold territory, currently near 37.
Historically, major cycle bottoms on the weekly timeframe have occurred at significantly lower RSI levels. During the 2022 bear market, RSI fell close to 20 before Bitcoin established a durable low. However, during the March 2020 market crash, the indicator bottomed near 34, suggesting that current readings are beginning to approach levels associated with previous periods of extreme market stress.
Source: xStation5
Daily Summary- Return of the Sell-off on Wall Streetโฌ๏ธ
๐ดUS100 drops nearly 4%
๐กโฌ๏ธGold at its lowest since March
๐ข๏ธWTI Crude Below 90 USD Tests the 100-Session Average
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
