Bitcoin, the dominant cryptocurrency in terms of market capitalization, has experienced a notable decline below $67,000 after reaching $71,000 last week, causing concern among traders. BlockchainedBB, a respected trader and analyst, conducted a thorough analysis to assess the current state and potential future scenarios for Bitcoin ($BTC).
$BTC dropped below the $67,000 mark, prompting questions about whether worry is warranted and whether traders should take long or short positions. Here is a comprehensive overview of everything you need to know.
A COMPREHENSIVE $BTC UPDATE FOR TRADERS
Please note: This update is specifically for traders and not investors. (1/17)
Key Support Levels Maintain Stability for Bitcoin Amid Market Volatility
BlockchainedBB provided reassurance that BTC is still holding above crucial support levels, including the 55, 100, and 200 daily Exponential Moving Averages (EMAs). The market sentiment remains positive as long as BTC remains above the 55 Daily EMA. According to the analyst, the market structure remains bullish as long as BTC remains above $66,222 on the daily chart.
The analyst noted that BTC is still within the initial green box range of $66,000 to $69,000. A daily closure below this range could signal a bearish trend. If BTC manages to reclaim the 200 EMA on the 4-hour chart and retraces back to it, it could present a favorable entry point for a swing long position. However, current volume and catalysts do not support a new long position. A closure below the 55 Daily EMA could trigger a short position with a target of $63,000.
Lower-than-anticipated CPI figures or a dovish stance from the Federal Reserve could potentially drive a rally, pushing BTC up to $74,000 by June 22. Despite the recent decline, institutions like BlackRock have been accumulating BTC once again after selling off in March, suggesting a potential shakeout rather than a prolonged downturn.
On-Chain Data and Market Sentiment Indicate Bullish Potential for $BTC
On-chain data reveals that BTC remains above the short-term realized price, indicating a bullish outlook unless it drops below this level. Miners are holding onto their BTC post-halving, a positive indication. Most traders maintain long positions, and options data reflects more call options than puts, with a max pain price at $69,000, hinting at a possible price attraction.
BlockchainedBB stressed that BTC is currently in a secure zone above $66,000. To maintain a bullish perspective, traders should watch for BTC to reclaim the 200 EMA on the 4-hour chart. A bearish shift could occur if BTC falls below $66,000, potentially setting up a short position with a target of $63,000.
As traders await the Federal Reserve’s decision and CPI data, caution is advised, with a focus on key levels and indicators to inform future actions. Conducting thorough research is recommended before investing in any cryptocurrency asset.
