On June 25, Bitcoin (BTC) reached $62,000 once again as markets gradually gained ground after the weekly start.After the Wall Street open, data indicated that the price strength of bitcoin was tentatively recovering. The day before, bulls had suffered when they fell to seven-week lows of $58,500, which set off a series of surrenders. On 4-hour timeframes, the Relative Strength Index (RSI) for Bitcoin fell to its lowest points since August 2023, which was also the last time the cryptocurrency and the US dollar gave up bull market support lines like the short-term holding aggregate cost basis.
In one of his most recent posts on X (previously Twitter), well-known trader Daan Crypto Trades stated that “range held where it needed to.” The biggest net selling day for Bitcoin in more than a year occurred yesterday. In addition, RSI values reached levels not seen in a year. Daan Crypto Trades went on, “Massive liquidity zone at $65K and all the way up to that point.” “I believe that level would be a nice one to aim for in the near future to see how the market has developed by then. “The range low at about 59K is being lost in validation.”
There was ongoing discussion about the possible psychological, if not physical, effects of the Mt. Gox bankruptcy proceedings. The trading firm QCP Capital remarked on the subject in part of its most recent update to Telegram channel members, saying, “We think there will continue to be selling pressure in the market as markets try to digest what 140,000 BTC means for markets and prices that in.” “Existing Mt Gox creditors are probably unhedged given how expensive it is to hold perp positions and option positions for long periods of time.”
The price of bitcoin has rebounded close to its 200-day exponential moving average (EMA), which is currently trading at almost $58,000, according to QCP. October was the most recent month that BTC/USD traded below that trendline.
However, fellow trader Skew cautioned about the U.S. dollar’s continued rise, which is typically a barrier for riskier assets and cryptocurrencies, and predicted that this would hold true in the near future. But according to Matthew Dixon, CEO of cryptocurrency evaluation site Evai, when Elliott Wave theory was applied to the US dollar index (DXY), the outlook was actually negative for dollar bulls. On the 15-minute chart, he said, “A valid 5 waves down for DXY is a very promising sign for BTC & Crypto.” “Risk assets would benefit further if we now see a three-wave retracement, ideally to around the 0.618 Fib. At the very least, we would expect another five waves down.”