Bitcoin (BTC) Price Poised to Breakout From June Downtrend, Key Levels to Watch
Throughout this month of June, the Bitcoin (BTC) price has been on a continuous downtrend failing to sustain above $62,000 as of now. As of press time, Bitcoin is trading at $61,657 levels with a market cap of $1.2 trillion. On the weekly, the Bitcoin price is down by nearly 5%. However, popular market analyst Rekt Capital believes that the Bitcoin price is set to give a major breakout from the June downtrend.
Bitcoin Price Eyes A Breakout From June Downtrend
In a recent analysis, Rekt Capital predicted that the ongoing downtrend in the BTC price is soon about to end. He also highlighted that continued price stability could further lead to a breakout challenge in the future.
By observing the current daily price action in Bitcoin, Rekt Capital noted that BTC seems to be forming an early-stage Bull-Flag pattern (as visible in the orange band). If this pattern gains strength, Bitcoin could potentially challenge the June downtrend while giving a major breakout on the upside.
As CoinGape reported, the Bitcoin bears are currently having a stronghold in the market and dominating BTC price movements. Amid strong miner capitulation, several market analysts believe that the BTC price can correct further from the current levels.
Also Read: Will Bitcoin Price Drop to $50,000 Soon?
Key Levels to Watch for BTC
Rekt Capital has further added that the current BTC price retracement is nearing the typical 22% correction seen throughout the market cycle. This correction also shows a positive initial reaction aligning with the support levels of previous all-time highs.
Rekt Capital emphasized that while downside wicks below the pattern bottom (marked in orange) are acceptable, it is crucial for Bitcoin’s price to close within the structure on a weekly basis to maintain this support level.
However, there could be major liquidation in place if the BTC price slips to $60,700. Popular analyst Ali Martinez stated that we could be seeing $22 million liquidated if the BTC price drops under this level.
Also, traders are keeping a close watch on the Bitcoin options expiry today with $6.6 billion worth of contracts at stake.
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