Potential Short-Term Bitcoin Price Drop Predicted
Bitcoin traders should prepare for a potential short-term price correction, according to prominent chart analyst Ali Martinez. Despite Bitcoin’s slight decline of 0.5% over the past 24 hours, bringing its price to $70,834.5, Martinez highlights a crucial support level at $68,500.
Bitcoin Price Correction Ahead
Martinez suggests a short-term correction for Bitcoin (BTC) as the TD Sequential indicator signals a sell-off on the four-hour chart. This indicator points to a possible one- to four-candlestick correction before Bitcoin resumes its upward trend.
The TD Sequential presents a sell signal on the #Bitcoin four-hour chart! It suggests $BTC could enter a one- to four-candlestick correction before continuing the uptrend. pic.twitter.com/oDeVfF31pi
— Ali (@ali_charts) June 5, 2024
Despite this forecast, Bitcoin’s market capitalization continues to surge, now reaching $1.4 trillion, alongside a significant increase in trading volume. On June 5, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their third-highest daily inflow ever, with a total net intake exceeding $488 million. This marked the 17th consecutive day of net inflows, reflecting ongoing investor interest in Bitcoin.
On June 5, Bitcoin spot ETFs had a total net inflow of $488 million, continuing the 17th day of net inflow. Grayscale ETF GBTC had a single-day inflow of $14.5802 million, Fidelity ETF FBTC had a single-day inflow of $221 million, and BlackRock ETF IBIT had a single-day inflow of… pic.twitter.com/6CHwUPj0Hv
— Wu Blockchain (@WuBlockchain) June 6, 2024
Crucial Support at $68,500
Martinez identifies $68,500 as the critical support level for Bitcoin. Maintaining this level could pave the way for further upward movement. Recently, Bitcoin broke out of a symmetrical triangle at $69,000, signaling a bullish trend. The pivot point is at $68,500, with immediate resistance at $71,200.
Despite these positive indicators, the Relative Strength Index (RSI) stands at 66.95, suggesting overbought conditions and hinting at a potential price correction.
Bitcoin Dominance Continues
Bitcoin’s market dominance remains robust at 54.53%, indicating sustained confidence from both institutional and retail investors. This strength persists despite the recent approval of a spot Ethereum ETF, demonstrating Bitcoin’s continued popularity in the crypto market. Additionally, the recent surge in inflows follows the approval and listing of Bitcoin-regulated funds in Australia, the U.K., and Thailand.
Also Read: Bitcoin NFTs Surpass $4 Billion in All-Time Sales Volume
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