Bitcoin Needs to Close June Above $56.5K to Maintain Its Upward Trend, Analysts Say

Bitcoin Could Lose Its Upward Momentum if June Closing Price Falls Below $56,500, According to New Analysis

As of June 26, insights from the trading resource Material Indicators suggest that Bitcoin must sustain a price above $56,500 by the end of June to maintain its bullish trajectory.

May lows become BTC price make or break level

This week, the BTC/USD pair dipped to its lowest since early May, making these figures a crucial focal point in current trading discussions.

Material Indicators anticipates an uptick in market volatility as the week progresses, driven by the convergence of weekly, monthly, and quarterly closings all on the same day.

If the market shifts in favor of the bears, the previous seven-week low of $56,500 could become a critical defensive zone for investors.

Keith Alan, co-founder of Material Indicators, noted alongside a chart from the firm’s trading tools, “Bitcoin is currently rebounding from this week’s rapid downturn. There’s a chance it might revisit these lows before Sunday, but maintaining or exceeding the monthly close within the designated red box will keep the uptrend intact.”

In another analysis, Alan highlighted fluctuations in order book liquidity, pointing to potential market manipulation or “spoofing” by high-volume traders that could impact prices in the short term.

With significant events like the Presidential Debate and new inflation figures on the horizon—coinciding with significant trading deadlines—Alan anticipates heightened market activity, stating, “As the week unfolds, I will monitor liquidity shifts to pinpoint primary resistance and support levels. Be cautious of potential market manipulations.”

According to data from Binance, the largest global exchange, there is increasing bid liquidity forming a “ladder” between the current price and $55,000.

Bitcoin traders bet on RSI rebound

The BTC/USD trading pair is currently displaying signs of being the most “overbought” since August 2023.

Historically, such levels of the Relative Strength Index (RSI) have indicated potential market bottoms, a signal keenly observed by traders.

On the current day, Daan Crypto Trades, a noted market analyst, commented on the market conditions, “Bitcoin and other major coins are showing movement from deeply oversold daily RSI levels to an average of about 36. While still low, it suggests ample potential for upward movement. Success of Bitcoin and Ethereum is key for a broader altcoin rally.”

As of the latest updates, Bitcoin’s daily RSI stands at 34.2, according to TradingView data.

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