Bitcoin price action is spelling T-R-O-U-B-L-E for buyers.
While Bitcoin often benefits from a risk-on backdrop, recent price action has failed to confirm the improved sentiment. Despite the apparent end of the conflict and a rally in equities, Bitcoin’s rebound from the June 5 low at $59,104 stalled at $67,150, falling short of the 38.2% retracement level at $68,168 of the decline from the May 6 high. That retracement represented the minimum hurdle buyers needed to clear to begin shifting control away from sellers.
Instead, the rally fizzled and the technical picture deteriorated. The price broke back below the 100-hour moving average at $65,322, then the 200-hour moving average at $64,116, and finally below a key trendline currently near $63,758. The trendline break accelerated downside momentum as buyers turned into sellers (see chart above and the video).
Bitcoin has since fallen to $62,236, putting the focus back on the June lows. As long as the price remains below the broken trendline and the 200-hour moving average, the near-term bias favors the sellers. A move back above the 200-hour moving average would ease the bearish pressure and shift the outlook toward neutral.
On the downside, the key level to watch remains the June 5 low at $59,104. A break below that level would strengthen the sellers’ grip and increase the risk of a deeper decline. For now, the word isT-R-O-U-B-L-E for buyers.
