Bitcoin Price Needs to Close Above $56.5K by End of June to Maintain Uptrend, Says TradingView Analysis

Bitcoin


BTCUSD

may witness a break in its prevailing bull trend should the price settle beneath $56,500 as June concludes, according to a recent price alert for BTC.

Within June 26 market analyses on X (originally known as Twitter), trading analyst firm Material Indicators pointed out a critical threshold that Bitcoin proponents should look out for.

Crucial May bottom becomes a decisive juncture for BTC value

BTCUSD

has dropped to its lowest point since May’s beginning this week, turning the previous lows into focal points among traders.

The trading experts at Material Indicators anticipate an uptick in market tension as we approach the week’s close, which notably coincides with the concurrent closure of weekly, monthly, and quarterly cycles.

The bearish scenario suggests defending the $56,500 price as the foundational domain that buyers must uphold, a figure reminiscent of a bottom zone from seven weeks prior.

“Bitcoin appears to be rebounding from the recent minor dip quite well,” stated Keith Alan, co-founder, while assessing charts from Material Indicators’ exclusive trading tools.

“There’s a possibility for a price dip retest before Sunday, but provided the monthly candlestick wraps up on or above the red zone, the ongoing pattern holds.”

Alan also provided updates on order book volume, warning of upcoming “spoofing” incidents. Spoofing consists of artificial fluctuations in order book depth generated by high-volume traders to steer the direction of the market.

“With the Presidential Debate, arrival of new inflation numbers, and closures of Daily, Monthly, Quarterly, and 6-month candles ALL happening on Sunday, increased volatility towards week’s end is my expectation,” he added.

“I’ll be observing where liquidity clusters to spot crucial zones of resistance and support. Potential spoofing should be on our radar.”

Data from Binance, a major exchange platform, demonstrates a bid support “ladder” augmenting between the ongoing spot rate and the $55,000 level.

Betting on a rebound in Bitcoin’s RSI

Continuous reporting by Cointelegraph has observed the

BTCUSD

trading pair enduring extremely “overbought” states, unprecedented since last August.

Related: Debating the significance of exchange balance trends? A 140K BTC Mt. Gox payout reignites discussion

Relative Strength Index (RSI) positions across various time increments have historically signaled market lows, a facet actively watched by investors.

Renowned analyst Daan Crypto Trades mentioned, “Coins are rebounding from extremely oversold one-day RSI levels, shifting to an average around ~36. While this is comparatively low and implies ample headroom for potential gains, the market’s trajectory is likely hinging on Bitcoin & $ETH to pioneer upward movements, paving the way for altcoins to flourish.”

According to Cointelegraph Markets Pro and TradingView, the current daily RSI for Bitcoin registers at 34.2.

This piece does not constitute financial advice or recommendations. All financial undertakings come with inherent risks, and readers are urged to conduct personal due diligence before making any investment decisions.