Based on the formation of the daily chart, Bitcoin is at a critical point in terms of price. As the battle between bulls and bears rages on, it is clear that sellers have the upper hand for now, despite the recent price stability.
BTC Prices at a Crucial Price Level: Will Bulls Take Control?
As BTC bulls attempt to reverse losses recorded last week, one analyst, citing the technical candlestick formation and the reaction in the 200-day moving average, thinks that the price reaction for now will have consequences in the coming days.
In a post on X, the analyst observed that the currency fell and closed below the 200-day moving average after last week’s losses. This formation was crucial.
Over the months, this dynamic line has acted as critical support, anchoring buyers during the last bull cycle from October to mid-March.
The recovery was sustained and although the level was only tested again in late June when prices were weak across the board, the break last week was decisive.
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While bearish, the analyst acknowledged that last week’s breakout was clear. However, as it stands, there is hope for the bears because there was no confirmation of the bearish bar.
For this to happen, prices must break below $56,500 and fall below $53,500, marking last week’s low. Once this happens, it will be official that the bears are back and sellers will likely continue to push lower in a bearish trend continuation formation.
For Bitcoin to recover, it is imperative that prices reject last week’s losses and move higher, closing above the 200-day moving average. This recovery will be the bullish signal that could mark the beginning of a rally, resuming the uptrend seen in Q1 2024.
For now, traders are watching the psychological line at $60,000 and ideally a close above $66,000. In that case, Bitcoin could find momentum to retest $72,000 – an important sell-off level.
Eyes on Bitcoin Spot ETF Flows
Even amid the optimism, traders are closely monitoring attending flows into Bitcoin exchange-traded funds (ETFs), especially in light of the German government’s sustained dumping. The sell-off has increased pressure on BTC, capping gains and dampening bullish momentum.
If sellers are persistent and reflect recent trends, there could be more bloodshed, and spot Bitcoin ETF issuers could see outflows.
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In recent weeks, especially in June when prices fell, BlackRock, Fidelity, Shades of grayand other major issuers saw outflows, accelerating the downtrend.
Featured image by DALLE, chart by TradingView