Bitcoin experienced a drop to its lowest point in six weeks on June 24 before witnessing a resurgence as buyers intervened, pushing the price back above $62,000 in less than a day.
Examining the current market dynamics of Bitcoin (BTC), well-known trader Jelle observed a renewed interest from buyers at the lower levels, with the $60,000 region serving as a crucial support level. In a post on X dated June 25, the analyst predicted a potential rise to $63,500 later in the week if Bitcoin manages to establish a higher low on a shorter timeframe.
Jelle also highlighted the oversold conditions seen in Bitcoin’s price after its fall to $58,400 on June 14, drawing parallels between the current price action and Bitcoin’s trading patterns around $26,000 in August 2023. Despite differences in the 2024 market cycle and Bitcoin hitting a new all-time high before the block subsidy halving, indications point towards Bitcoin’s most significant gains lying ahead.
For Jelle, the relative strength index (RSI) plays a pivotal role, serving as a key indicator for assessing market conditions. The RSI, a trend-tracking oscillating indicator that gauges the level of overbought or oversold conditions of an asset, currently paints an intriguing picture on a daily timeframe for BTC/USD.
Historically, Bitcoin has shown robust upward momentum when the RSI enters the “oversold” region below 70, leading to sustained price rebounds that can last for an extended period before the rally becomes sustainable.
Renowned author Robert Kiyosaki, known for “Rich Dad, Poor Dad,” viewed Bitcoin’s dip below $60,000 as an opportunity to increase his holdings, contrasting with the sentiment of many others urging to sell during such market downturns.
A notable factor contributing to the recent Bitcoin price movement was the selling pressure stemming from the now-defunct crypto exchange Mt. Gox. The announcement by the Mt. Gox trustee on June 24 regarding plans to repay creditors in July, with repayments in Bitcoin and Bitcoin Cash (BCH) valued at over $9 billion at current rates, also influenced the market.
Bitcoin found support around the $60,000 mark according to data from Cointelegraph Markets Pro and TradingView, as it sought to reclaim the $62,000 level following the dip on June 24. Analysts and traders are closely monitoring the support range between $60,000 and $64,000, with a breach potentially leading to deeper corrections.
Considering the market dynamics, popular trader Aksel Kibar noted Bitcoin’s steady uptrend and identified the significance of the upper boundary of the ascending parallel channel at $60,000 as a crucial support level.
Based on CoinGlass data, the most substantial concentrations of bids in the 24-hour period up to the present moment appeared at $60,200, $60,600, and $61,230.
It’s important to note that this article does not offer investment advice and readers are advised to conduct their own research and analysis before making any investment or trading decisions.