Bitcoin, the top cryptocurrency in terms of market capitalization, has experienced a notable decline below $67,000 after reaching $71,000 last week. This has caused considerable concern among traders. Well-known trader and analyst BlockchainedBB has conducted a thorough analysis detailing the current situation and potential future scenarios for Bitcoin ($BTC).
$BTC has dropped below 67K, leading to questions about whether or not one should be worried. The debate of whether to go long or short is ongoing. Here is a comprehensive update for traders on everything you need to be aware of.
BlockchainedBB took to Twitter to provide an update, signaling that Bitcoin is still holding above key support levels, including the 55, 100, and 200 daily Exponential Moving Averages (EMAs). The market structure is still bullish as long as Bitcoin remains above $66,222 on the daily chart.
According to the analysis, Bitcoin is currently within the range of $66,000 to $69,000. A daily close below this range could signify a bearish trend. Reclaiming the 200 EMA on the 4-hour chart and retracing back to it could present a good opportunity for a swing long position. However, current volume and catalysts are not sufficient for a new long position. If Bitcoin closes below the 55 Daily EMA, it could trigger a short position with a target of $63,000.
Lower-than-expected CPI numbers or a dovish stance from the Federal Reserve could potentially lead to a rally, pushing Bitcoin up to $74,000 by June 22. Despite the recent drop, institutions like BlackRock have been accumulating Bitcoin again after selling off in March, indicating a possible shakeout rather than a prolonged downturn.
On-chain data and market sentiment suggest a bullish potential for $BTC. Miners are holding onto their Bitcoin post-halving, which is a positive sign. Most traders are still in long positions, and options data shows more call options than puts, with a max pain price at $69,000, hinting at a potential price magnet.
BlockchainedBB stressed that Bitcoin is currently in a secure position above $66,000. For a bullish outlook, traders should watch for Bitcoin to reclaim the 200 EMA on the 4-hour chart. A bearish scenario could unfold if Bitcoin drops below $66,000, setting up a potential short position with a target of $63,000.
As traders await the Federal Reserve’s decision and CPI data, caution is advised. It is crucial to monitor key levels and indicators to make informed decisions. Conducting your research (DYOR) before investing in any cryptocurrency asset is highly recommended.