Markets
Keep an eye on these levels in Bitcoin price as investors look for a new catalyst
Main conclusions
- Bitcoin fell more than 12% in the second quarter as investors appeared to sit on the sidelines, searching for a new catalyst to stem the decline in spot Bitcoin ETF inflows and uncertainty over when the Federal Reserve might start cutting interest rates.
- BTC continues to trade near the bottom of a trading range, with the relative strength index moving towards oversold levels, indicating weakening price momentum.
- After a break below the trading range, BTC price could find support around $53,000, $44,000, and $38,000.
- The measuring principle, which calculates the distance between the trading range’s lower and upper trendlines and adds the value to the pattern’s upper trendline, projects a price target of $87,300.
Bitcoin (BTC) fell more than 12% in the second quarter, with investors appearing to sit on the sidelines, looking for a new catalyst to combat the decline spot bitcoin exchange-traded fund (ETF) entries and uncertainty about when the Federal Reserve may start cutting interest rates.
Despite the improved sentiment, Bitcoin bulls can take solace in the fact that the digital asset has returned an average of 7% in the month of July between 2013 and 2023, according to data from cryptocurrency analytics site Coinglass.
Below, we use technical analysis to identify key levels of interest on the Bitcoin chart that investors may be watching this quarter.
Levels to watch amid weakening price momentum
Since reaching its all-time high in mid-March, Bitcoin has fluctuated within a range of Trading range below average volumehighlighting the lack of enthusiasm among market participants.
Over the past few weeks, BTC continues to trade near the bottom of the range, with the relative strength index (RSI) moving towards oversold levels, indicating weakening price momentum. Amid a break below the lower trendline of the range and 200-day moving averageInvestors should monitor three main levels.
First, it’s worth keeping an eye on the $53,000 area, a region on the chart that could attract buying interest in a time frame. consolidation while Bitcoin has been trending upwards throughout February.
A close below this level could lead to a downward move to around $44,000, where the cryptocurrency would likely find support in price action between December 2023 and February of this year.
A more significant correction could see the digital asset’s price revisit the $38,000 level, which is close to a four-week consolation period that formed as part of the broader picture. uptrend in November of last year.
Monitor this level amid a new record
Although technical aspects point to short-term weakness, it is also worth identifying a positive side Target Price to assess an area on the chart where investors can book profits if the legacy cryptocurrency continues to make a new All-Time High (ATH).
We can do this using the measuring principle. First, we calculate the distance between the lower and upper trendlines of the trading range in dollars and add this value to the upper trendline of the pattern. In this situation, we add $14,500 to $72,800, which projects a price target of $87,300.
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