Bitcoin (BTC) is still facing a stalemate as the price maintains its consolidation, with a crypto trading expert identifying a chart level that could give bears the upper hand if breached.
In a TradingView post on June 13, the analyst TradingShot pointed out that Bitcoin is at a critical juncture, identifying the one-day moving average 50 (1D MA50) at around $65,000 as a significant support level.
The analyst noted that this level needs to hold to prevent further declines. If Bitcoin breaches this level, it may test the $60,000 support zone again.
This analysis aligns with historical price action. Notably, TradingShot drew parallels with a previous pattern observed from April 8 to 19, characterized by a descending channel.
Bitcoin price analysis chart. Source: TradingView/TradingShot
Following a bearish breakout during that period, Bitcoin encountered resistance precisely at the 1D MA50, subsequently confirming a downtrend towards the $60,000 price target.
“It is important to note that after the bearish break-out, the price was rejected straight on the 1D MA50. <…>. We are currently on a similar Channel Down,” the expert said.
Bitcoin rejection
The expert noted that Bitcoin experienced a rejection at the four-hour moving average 50 (4H MA50) on June 11, triggering a pullback that is now approaching the 1D MA50. This level proved pivotal earlier in the week when it successfully supported Bitcoin’s price. However, a breach of this support now could spell trouble.
It’s worth noting that Bitcoin has experienced modest losses in the short term, with investors anticipating further corrections. The recent drop below the $68,000 mark was triggered by significant net outflows of $226.21 million from U.S. spot exchange-traded funds (ETF) in a single day.
Possible capitulation
Additionally, the market is concerned about a possible cap on Bitcoin’s upward potential due to miners’ cash demands. As reported by Finbold, miners are selling at a high rate, which could be a sign of Bitcoin price capitulation in the coming weeks.
Notably, Bitcoin surged from $68,000 to $70,000 on June 12 following a cooler-than-expected May U.S. Consumer Price Index (CPI). However, the gains were quickly erased after the Federal Open Market Committee (FOMC) revised its rate cut forecast for this year.
Amid the prevailing uncertainty, Bitcoin is valued at $67,105, reflecting a modest daily correction of about 1%. On the weekly chart, BTC has suffered losses of nearly 6%.
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