Order

Bitcoin

when

mini

Material

Bitcoin risks losing its overall uptrend if it ends June below $56,500, a new BTC price warning says.
In market <a href="https://x.com/MI_Algos/status/1805776129984221231/photo/1" target="_blank" rel="noopener nofollow">coverage</a> on X on June 26, trading resource Material Indicators highlighted a key line in the sand for Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) bulls.
<h2 data-ct-non-breakable="true" id="may-lows-become-btc-price-make-or-break-level">May lows become BTC price make or break level</h2>
BTC/USD hit its lowest levels since the start of May this week — and those old lows are now firmly in focus within trading circles.
Market pressure is likely to increase through the end of the week, Material Indicators predicts — not least due to the weekly, monthly and quarterly close all coming on a single day.
Should bears gain the upper hand, the $56,500 level from seven weeks ago will form the floor of a bottoming zone that buyers need to defend.
“So far, Bitcoin seems to be recovering nicely from this week’s mini flush,” co-founder Keith Alan <a href="https://x.com/KAProductions/status/1805780297490780394" target="_blank" rel="noopener nofollow">commented</a> alongside a chart from one of Material Indicators’ proprietary trading tools. 
<blockquote data-ct-non-breakable="true">
 “There is always a chance that price goes back to retest the lows before Sunday, but as long as the monthly candle closes within or above the red box, then the trend remains in tact.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/dea5f56a-4b84-4806-9145-59f5118a6568.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD chart. Source: Material Indicators
 </figcaption>
</figure>
In a separate <a href="https://x.com/KAProductions/status/1805784471846678786" target="_blank" rel="noopener nofollow">post</a>, Alan tracked order book liquidity, cautioning over potential “spoofing” in the coming days. This refers to the&nbsp;<a href="https://cointelegraph.com/news/bitcoin-whales-btc-price-slips-2-8-nearing-66-5-k">artificial shifting of liquidity</a> between various levels by large-volume traders in an attempt to influence price action.
“With the Presidential Debate, new inflation data and the Daily, Monthly, Quarterly and 6 Month candle closes ALL coming on Sunday, I’m expecting more volatility through the end of the wee,” he continued. 
<blockquote data-ct-non-breakable="true">
 “As the week develops, I'm watching to see where liquidity concentrates to identify the strongest areas of resistance and support. Watch out for possible spoofs.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/5b395619-cbcd-48eb-ba66-2bdb0d5cb5d0.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT order book liquidity for Binance. Source: Keith Alan
 </figcaption>
</figure>
Order book data from the largest global exchange, Binance, showed a “ladder” of bid liquidity strengthening between the current spot price and $55,000.
<h2 data-ct-non-breakable="true" id="bitcoin-traders-bet-on-rsi-rebound">Bitcoin traders bet on RSI rebound</h2>
As Cointelegraph <a href="https://cointelegraph.com/news/bitcoin-taps-62k-btc-price-rebound-us-dollar">continues to report</a>, the BTC/USD trading pair has been experiencing its most “overbought” conditions since August 2023.
Related: <a href="https://cointelegraph.com/news/bitcoin-exchange-balances-140k-btc-mt-gox-payout">Bitcoin exchange balances ‘overrated?’ 140K BTC Mt. Gox payout sparks debate</a>
On multiple timeframes, these relative strength index (RSI) levels have acted as bottom signals in the past — a phenomenon not lost on market participants.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/994638b2-2031-4f1e-81e7-53d38fa407ff.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: Ali
 </figcaption>
</figure>
“Coins moving from their heavily oversold 1 day RSI levels back to an average of ~36,” popular trader Daan Crypto Trades <a href="https://x.com/DaanCrypto/status/1805859288360837269" target="_blank" rel="noopener nofollow">noted</a> on the day. 
<blockquote data-ct-non-breakable="true">
 “This is still low and leaves a lot of room for growth. But the market needs Bitcoin &amp; $ETH to lead the way and alts will have a good time.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/3bbb71d1-0a87-46e0-9b42-9b584a8fbcf7.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-day chart with RSI data. Source: TradingView
 </figcaption>
</figure>
Bitcoin’s daily RSI stood at 34.2 at the time of writing, per data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price must end June above $56.5K to defend uptrend — Analysis

Table of Contents

Cointelegraph

Other articles published on Jun 26, 2024

LUNC Price To Rally Amid Massive Binance Burn As Over 1 Trillion LUNC Staked

Economist Predicts Bitcoin Price Drop

US spot Bitcoin ETFs see a rebound with $31 million in net inflows after seven days of outflows

A Crypto Community Triumph? Jamaal Bowman Who Voted Against Key Crypto Bills Loses NY Primary To ...

XRP Bullish Signals Point to Huge Gains: Is Another 2017 Style Surge Imminent?

Binance’s Dubai unit wins VASP license

Join our free newsletter for daily crypto updates!