% 1.85
BTC Dominance:
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
$ 68.414
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

Bitcoin Approaches Crucial Price Crossroads as Moving Averages Tighten


Since its average price over three separate time periods has suddenly dropped into a tight cluster, indicating a possible breakout, Bitcoin may shortly find itself at a crucial price crossroads.

Indicators Point to Potential Breakout in Bitcoin

“After some nice coiling pricing action since March, my boring Bitcoin Trend model triggers,” Real Vision’s head crypto analyst Jamie Coutts wrote in a June 4 X post following a declining average price for three short-term periods all falling inside a 5% range.

The Simple Moving Average (SMA), which computes the average of historical prices inside a certain time window, showed convergence over three separate periods on June 4: the 5-day, 30-day, and 50-day periods. Between $65,000 and $68,239, all three intervals declined.

Though tight consolidation can sometimes cause a price retrace as well, this indicates minimal volatility over a lengthy period of time for traders and usually generates optimism for a possible breakout.

Based on TradingView’s Moving Average Indicator, Bitcoin is right now a “strong buy.” This indicator considers both the SMA and the somewhat distinct indication with more weight on more recent prices, the exponential moving average.

Current Market Dynamics and Support Levels

Based on data from CoinMarketCap, Bitcoin is presently trading at $70,840 above the three SMAs.

For traders, trading above the moving average is a positive indicator that, should the price drop, the moving average may become Bitcoin’s new support level.

On the same day, it temporarily peaked at $71,040 before rapidly reversing, a crucial price level that traders are eyeing as the next target to reach its all-time high, $73,679.

READ:  Pantera Capital Chasing Opportunity Arisen from FTX

Concurrently, for the past thirty days, Bitcoin has maintained above its major support level of $60,000, a significant mark keenly observed by traders. It fell short of $72,000, though, peaking on May 21 at $71,946.

This Might Interest You: Lugh Halts Euro Stablecoin Amid MiCA Regulations

Coutts underlined the notable increase in the number of American banks “on the brink of collapse” during the first quarter of 2024, even though the price’s breakout direction is yet unknown.

The Federal Deposit Insurance Corporation (FDIC) said on May 29 that 63 banks were on the “Problem Bank List,” a list designed to monitor depository institutions in great danger of insolvency—that number surged by 21% in the first quarter of 2024.

Following three banks failing in March 2023, Bitcoin’s price increased 35% over nine days to $27,050 at Signature Bank, Silvergate Bank, and Silicon Valley Bank.

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *