Bitcoin (BTC) saw a return to $62,000 on June 25 as markets gradually began to recover from the weekly open.
BTC price tested the 200-day trendline as the market bounced back, according to data from Cointelegraph Markets Pro and TradingView. The price strength of BTC showed a tentative recovery after the Wall Street open, following a day where bulls suffered as the price hit seven-week lows of $58,500, leading to a cascade of capitulations.
The relative strength index (RSI) reading on four-hour timeframes reached its lowest levels since August 2023, the last time BTC/USD gave up bull market support lines such as the short-term holder aggregate cost basis.
Popular trader Daan Crypto Trades confirmed that the range held where it needed to in one of his latest updates on X. Data from monitoring resource CoinGlass showed that total BTC long liquidations for June 24 were just under $150 million.
Daan Crypto Trades noted a massive liquidity zone at $65K and all the way up to that point. The psychological and physical impact of the Mt. Gox bankruptcy proceedings continued to circulate in the market, with trading firm QCP Capital stating that there will continue to be selling pressure as markets try to digest what 140,000 BTC means for markets and prices.
QCP noted that BTC’s price had bounced near its 200-day exponential moving average (EMA), currently at almost exactly $58,000. The last time BTC/USD traded below that trendline was in October.
Fellow trader Skew warned of ongoing strength for the United States dollar, traditionally a headwind for risk assets and crypto, suggesting that this would continue in the short term. Applying Elliott Wave theory to the U.S. Dollar Index (DXY), Matthew Dixon, CEO of crypto rating platform Evai, argued that the picture was conversely bearish for dollar bulls, commenting on the 15-minute chart.
It’s important to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.