Bitcoin (BTC) Could Soon Find Itself at a Critical Price Crossroads as the Average Price Drops

Bitcoin (BTC) may soon find itself at a critical price crossroads as its average price over three different time frames has fallen into a tight range, indicating a potential breakout.

“After some nice price action since March, my boring Bitcoin trend pattern came into play,” Jamie Coates, senior cryptocurrency analyst at Real Vision, said in a June 4 article after noting an average price similar to Bitcoin over three short-term periods. . ”, all of which were in the 5% range.

On June 4, the simple moving average (SMA) – which averages past prices over a specific time window – indicated convergence on three different time frames, the 5-day, 30-day, and 50-day time frames. The three periods were between $65,000 and $68,239.

This signals to traders low volatility over a long period of time and usually raises hopes of a potential breakout, although a tight consolidation can also push the price lower.

Bitcoin’s three simple moving averages are converging. Source: Jimmy Coates

Bitcoin is currently a “strong buy,” according to TradingView’s moving average indicator. This indicator takes into account both the simple moving average and the exponential moving average. This is a slightly different indicator that gives more weight to the most recent prices.

Bitcoin is currently trading above the three simple moving averages, at $70,840, according to CoinMarketCap data.

Trading above the moving average is a positive sign for traders, indicating that the moving average could serve as a new support level for Bitcoin if the price declines.

The same day, it briefly reached $71,040 before quickly pulling back, a crucial price level that traders see as the next step toward its all-time high, $73,679.

Meanwhile, over the past 30 days, Bitcoin has managed to hold above the key support level of $60,000, an important threshold that traders are watching closely. However, it failed to reach $72,000, peaking at $71,946 on May 21.

Bitcoin is up 11.93% over the past 30 days. Source: CoinMarketCap

about: Bitcoin, which has been dormant for 5 years or more, is waking up in a new “distribution”.

While the price remains uncertain about the direction of the breakout, Coates reiterated the significant increase in the number of U.S. banks “on the brink of collapse” during the first quarter of 2024.

On May 29, the Federal Deposit Insurance Corporation (FDIC) announced that the number of banks on its “Troubled Bank List” – a list used to track depository institutions at high risk of insolvency – jumped by 21% in the first quarter of 2024. 63 A bank.

After the collapse of three banks in March 2023, namely Signature Bank, Silvergate Bank and Silicon Valley Bank, the price of Bitcoin increased by 35% over nine days to reach $27,050.

review: Polygon never planned to beat Ethereum: Anurag Arjun, X Hall of Flame

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

Leave a Reply

Your email address will not be published. Required fields are marked *