Bitcoin‘s value continues its downward trend, falling by 1.5% in a single day and by 7.65% over the past week, reaching $62,130 as of June 24. Analysts predict further declines, with Bitcoin showing signs of recovery every time it hits the lower trend line of its descending parallel channel, established since the bull run in March 2024.
What’s Driving Bitcoin’s Decline?
Bitcoin tends to pull back to the lower trend line after testing the upper trend line as resistance. As of June 24, it is once again moving towards this lower trend line, which aligns with the psychological support level of $60,000. Interestingly, this target is near Bitcoin’s 200-day exponential moving average of $58,000, suggesting an increased likelihood of Bitcoin approaching the $58,000-$60,000 range in July.
Market analyst Teddy Cleps highlights that Bitcoin’s current level is approaching a historically significant point at the 21-week EMA, predicting that $61,000 could be the bottom if history repeats itself.
What are Experts Saying?
Michael Novogratz, founder of Galaxy Digital Holdings Ltd., previously predicted that Bitcoin would trade between $55,000 and $75,000 during the second quarter of 2024. Novogratz attributes the current market pause to positive economic data and waning expectations for Fed rate cuts, suggesting that the consolidation phase will persist until there is an economic slowdown or post-election legislative clarity.
Key Takeaways
- Bitcoin is trending towards the $58,000-$60,000 range, aligning with its 200-day EMA.
- The $61,000 mark is considered a potential bottom, based on historical behavior.
- Market conditions and economic indicators influence Bitcoin’s performance.
Overall, Bitcoin’s price trajectory remains uncertain, with analysts closely monitoring economic trends and historical patterns to gauge future movements.