Bitcoin (BTC) held rigidly at $71,000 until June 7, although analytical indicators began to call for a retest of lower levels.
Bitcoin: Bulls “save” the daily close after exchange sell-off
Data from Cointelegraph Markets Pro and TradingView showed that BTC price action bounced higher after hitting intraday lows of $70,120 on Bitstamp before the daily close.
The latest moves continued the same pattern that has characterized the entire week, with trips to resistance below all-time highs and heavy wicks to the downside. Another such phase, on June 5th, took BTC/USD to $69,600 before a rebound.
Commenting, trading resource Material Indicators suggested that markets are currently calling for a more significant return to key support around $69,000.
“Both Trend Precognition algorithms are showing new #TradingSignals that indicate it may be time to retest local support”he wrote in a post on X (formerly Twitter) about the signals from his proprietary trading indicators.
“For me, a return to $71.6k is invalid, and a hot Unemployment Report in the morning could be the catalyst for such a move.”
Keith Alan, co-founder of Material Indicators, added that it would “very happy” to see $69,000 — a significant psychological line — be tested as part of a resistance/support flip by the bulls.
“With the 21-day moving average hovering around $68.8k, technical support is strong, but a lower-than-expected unemployment rate report or the arrival of a bearish wave could send prices lower and punish late longs”Allen concluded.
Allen referred to the upcoming US macroeconomic data on unemployment, often known to have a notable impact on BTC price volatility.
Meanwhile, during the US trading session on June 6, popular trader Skew noticed considerable BTC selling from major exchanges Binance and Coinbase.
On Coinbase alone, Skew noticed 2,000 BTC being sold, wondering “who is making an extra 100 million dollars.”
Nonetheless, the bulls provided a lifeline in time for the daily close, avoiding the continuation of the “weakness” which, according to Skew, could have more lasting consequences on BTC’s price performance.
BTC price is “strongly poised” for breakout
Zooming out, Michaël van de Poppe, founder and CEO of trading firm MNTrading, said that Bitcoin has yet to break out of its established range — even with the latest signs of strength.
“Bitcoin is still stuck within the range, but is very poised for an upside breakout towards a new all-time high”he summarized on X.
“Slowly but surely, altcoins are moving. It’s a good time.”
Meanwhile, Alan blamed whales for the slow progress towards all-time highs. These high-volume investors, he argued, were deliberately holding back the market to protect their short positions.
In one of his last answers on X, Alan talked about “a bunch of short positions” between $71,500 and $75,000, with whales that “they suppress the price to avoid being liquidated.”
The latest data from tracking resource CoinGlass shows that as of this writing, $71,900 is the most attractive benchmark for liquidity above the spot price.
This article does not contain investment advice or recommendations. Every investment and trading operation involves risk and readers should conduct their own research before making a decision.
