Bitcoin is struggling to shake off weakness judging by its performance in recent trading sessions. Following the June 24 crash, general sentiment has been bearish and sellers are likely to double down, erasing the gains recorded over the past two days.
As things stand, the US government’s sale of 4,000 BTC is a negative impact for buyers. This comes hours after the German government dumped thousands of BTC earlier this week, forcing prices to fall.
Bitcoin Trends in Oversold Territory
One analyst is optimistic even amid this sense of unease in the crypto and Bitcoin markets. Citing the formation of the RSI indicator, a tool for measuring momentum, the analyst is convinced prices could recover strongly in the future.
![Bitcoin Battling Headwinds: Is the Selloff Over? 1 Oversold BTC | Source: @CryptoJelleNL via X](https://thegurumedia.com/wp-content/uploads/2024/06/GRD9QKXWMAE6_wv.jpeg)
Bitcoin is at its lowest overbought level in over 300 days at spot rates. This formation echoes a similar situation in 2023 when prices fell below $30,000.
Once BTC moved into oversold territory, prices recovered strongly, surpassing $50,000 and reaching an all-time high in the coming months until March 2024.
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Bitcoin currently sits in oversold territory after consolidating for about three months following its peak in March 2024. Prices then surged to $73,800 before falling sharply, reaching $56,500 in May 2024. Although prices have since recovered, finding another ceiling at $72,000, the path of least resistance in the short term is bearish.
Bitcoin is testing the lower limit of its horizontal range for the fifth time since March. For bulls to take control, prices must remain above the $56,500 and $60,000 zones for the uptrend to continue.
However, a confirmed breakdown below the low range could see BTC crater to $50,000 to $52.
Will BTC bounce higher? Capital Flow to Spot ETFs
Another analyst also wait prices recover, emphasizing the importance of the bull market support band. Sharing on X, the analyst said this support band served as a reliable carrying zone in the last bull cycle.
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Its successful defense in January 2024 provides a positive precedent. With BTC at the same level, the probability of a refreshing recovery is high, providing a glimmer of hope.
![Bitcoin Battling Headwinds: Is the Selloff Over? 3 One-off Bitcoin ETF inflows | Source: Sosovalor](https://thegurumedia.com/wp-content/uploads/2024/06/Screenshot815.png)
Despite the recent price decline and days, if not weeks, of outflows, interest in spot Bitcoin exchange-traded funds (ETFs) is rising.
On June 26, US$21.5 million was invested in these products. Apart from that, Fidelity and Shades of gray saw entries, according to SosoValue data.
DALLE Featured Image, Chart from TradingView