Bitcoin (BTC) experienced a significant drop in price on June 24, hitting a six-week low before buyers intervened, pushing the price back above $62,000 within 24 hours.
Analyzing the current market structure, popular trader Jelle noted that buyer interest was returning at the lows, with the $60,000 zone acting as support. Jelle expressed optimism that if Bitcoin could establish a lower-timeframe higher low, the price could reach $63,500 before the week was out.
Jelle also pointed out that the oversold conditions displayed by BTC price following its drop to $58,400 on June 14 were similar to when Bitcoin traded around $26,000 in August 2023. Despite the differences in the 2024 cycle, with Bitcoin reaching a new all-time high before a block subsidy halving, Jelle believes there is evidence to suggest that Bitcoin’s steepest gains are still ahead, particularly due to the relative strength index (RSI).
The RSI is a major factor for Jelle, as it captures the extent to which an asset is overbought or oversold at a given level. On a daily time frame, BTC/USD is painting an exciting picture, with the daily RSI reaching its lowest point in nearly a year. Historically, Bitcoin tends to show its most significant upside when the RSI is in the “oversold” zone below 70, leading to steady rebounds and sustainable rallies.
Commenting on Bitcoin’s dip below $60,000, “Rich Dad, Poor Dad” author Robert Kiyosaki saw it as an opportunity to increase his holdings, advising those terrified by Bitcoin crashes to sell and hold a steady job during market downturns.
The recent Bitcoin crash was partly attributed to selling pressure from the defunct crypto exchange Mt. Gox. The Mt. Gox trustee announced plans to repay its creditors in July, with repayments in Bitcoin and Bitcoin Cash estimated to be worth over $9 billion at current rates.
Bitcoin found support at the $60,000 level, with the demand area between $60,000 and $64,000 being a key support that traders and analysts are monitoring closely, as a breach of this level could result in deeper corrections.
Popular trader Aksel Kibar emphasized the importance of the support provided by the upper boundary of the ascending parallel channel at $60,000, declaring that Bitcoin was still in a steady uptrend and could be considered a pullback to the channel.
Traders are also closely watching the largest concentrations of bids which have appeared in the 24 hours to the time of writing, between $60,200 and $61,230.
It’s important to note that this article does not contain investment advice or recommendations, and readers should conduct their own research when making a decision about investment or trading moves.