Sunday, June 23, 2024

Bitcoin Price Shows Signs of Potential Breakout Near $71,000.

The average price of Bitcoin, BTC $71,048 for three separate time periods has now dropped inside a tight cluster, suggesting a possible breakout. This suggests that the cryptocurrency may soon find itself at a crucial price crossroads.

Jamie Coutts, chief crypto analyst at Real Vision, said in a June 4 X post that “my boring Bitcoin Trend model triggers after some nice coiling pricing action since March.” He also pointed out that Bitcoin’s average price has been consistent during three short-term periods, all of which have had price declines of less than 5%.

On June 4, the 5-day, 30-day, and 50-day periods showed signs of convergence according to the Simple Moving Average (SMA), which determines the average of previous prices within a given time frame. The range of all three intervals was $65,000–$68,239.

Though the tight consolidation might also result in a market retracement, traders are usually encouraged by this long-term indication of minimal volatility and a possible breakout.

The Moving Average Indicator for Bitcoin on TradingView currently reads “Strong buy.” This indicator considers both the SMA and the somewhat distinct Exponential Moving Average, which gives more weight to recent prices.

At $70,840, Bitcoin is presently trading above all three SMAs, according to CoinMarketCap data.

Trading above the moving average is a good indicator for traders since it implies that, should the price of Bitcoin drop, the moving average may act as a new level of support.

It briefly hit $71,040 that day before swiftly retreating; traders are focusing on this price level as the next step toward the market’s all-time high, $73,679.

In the meantime, Bitcoin has been able to maintain above its critical support level of $60,000 for the past 30 days, a critical milestone that traders are constantly monitoring. Though it did peak on May 21 at $71,946, it fell short of $72,000.

Coutts underlined the noteworthy increase in the number of U.S. banks “on the brink of collapse” during the first quarter of 2024, even though the price is still unsure of its breakout direction.

The number of banks on the “Problem Bank List,” a list intended to monitor depository institutions at high risk of insolvency, increased by 21% in the first quarter of 2024 to reach 63 banks, according to a report released by the Federal Deposit Insurance Corporation (FDIC) on May 29.

Following the failure of Silicon Valley Bank, Silvergate Bank, and Signature Bank in March 2023, the price of bitcoin increased by 35% in just nine days to $27,050.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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