Bitcoin’s price action above the $71,600 mark indicates a potential correction on the horizon. The question now is how far will the price drop before entering a parabolic phase?
Clusters of BTC price above $71,600 point to a likely correction
Bitcoin’s price clusters are when the asset’s prices tend to cluster around round numbers. The recent BTC price cluster near $71,600 suggests that there may be further downside movement, as noted by renowned crypto analyst Rekt Capital.
On June 17, Rekt Capital shared insights with his large following of 477,000 followers, highlighting the potential for a correction in Bitcoin’s price. The BTC/USD 1-day chart shows a rise to $71,949 on June 7, followed by a drop to the current $65,393 level, representing a 5.7% decrease on the weekly chart based on data from Bitstamp.
Is the last dip below $64,000 before the rally continues?
For Bitcoin to enter the much-anticipated “parabolic phase” of the bull cycle, it may need to correct below $64,000 for a healthy reset, according to Rekt Capital. However, another scenario suggests that Bitcoin could fall below $60,000 based on a technical formation observed on the monthly chart by popular trader Titan of Crypto.
The Relative Strength Index (RSI) for Bitcoin, standing at 41 on June 17, indicates that the asset is trading at fair value. However, during the last major correction on May 1, the RSI fell to 33 when Bitcoin’s price dipped to $56,600 before picking up bullish momentum again.
Support levels and potential liquidation
Bitcoin has significant support at the $64,500 mark, as indicated by liquidation levels. A drop below this level could lead to the liquidation of over $520 million worth of leveraged long positions, according to Coinglass data.
Short-term holders (STHs), holding BTC for up to 155 days, have a realized price of $62,200, suggesting a potential support level for Bitcoin. As the STH cohort represents the more speculative end of BTC holders, their realized price could be an indicator of the next major support level for Bitcoin’s price.
It’s important to note that this article does not provide investment advice. All investment and trading decisions carry risks, and readers are encouraged to conduct their own research before making any decisions.