A new price alert says Bitcoin risks losing its overall uptrend if it ends June below $56,500.
In a market update on X (formerly Twitter) on June 26, trading resource Material Indicators highlight an important trend for Bitcoin bulls.
Bottom in May can become level “one lives, one survives” with Bitcoin price
BTC hit its lowest levels since early May this week, and those old lows are now making headlines among traders.
Market pressure is likely to increase through the weekend, according to Material Indicators – especially since the weekly, monthly and quarterly closes all take place on the same day.
If the bears gain the upper hand, the $56,500 level from seven weeks ago will form the floor of the bottoming zone that buyers need to defend.
“So far, Bitcoin appears to be recovering well from this week’s slight decline. There is always the possibility of a retest of the pre-Sunday low, but as long as the monthly candle closes within or above the red range, the trend remains intact,” co-founder Keith Alan commented with a chart from one of Material Indicators’ exclusive trading tools.
BTC price chart | Source: Material Indicators
In one post Another, Alan has been monitoring the liquidity of the order book, warning of the risk of “spoofing” in the coming days. Spoofing is understood as high volume traders shifting liquidity between different levels in an attempt to influence price action.
“With the Presidential debate, new inflation data and daily, monthly, quarterly, six-month candles coming up on Sunday, I expect more volatility this weekend. I’m tracking where liquidity is concentrated to identify the strongest areas of resistance and support. Be careful of potential spoofing.”
TAccount balance of the book command BTC for Binance | Source: Keith Alan
Order book data from the largest global exchange Binance shows an enhanced “ladder” of bid liquidity between the current spot price and $55,000.
Bitcoin traders bet on RSI recovery
BTC is in the most “overbought” situation since August last year.
On many timeframes, these Relative Strength Index (RSI) levels have previously acted as bottom signals.
Relative Strength Index | Source: Ali
“Coins are moving from oversold 1-day RSI back to average ~36. This number is still low and there is much room for growth. But the market needs Bitcoin & ETH to lead and altcoins will have a good time,” famous trader Daan Crypto Trades note during the day.
BTC 1 day chart and RSI data | Source: TradingView
Bitcoin’s daily RSI is at 33 at the time of writing, according to data from TradingView.
You can see the Bitcoin price here.
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According to Cointelegraph
