Bitcoin (BTC) ‘coiling’ up for a huge move as it hovers around $71K
Bitcoin’s average price over the past five, thirty, and fifty days has been nearly identical, indicating little volatility and increasing the likelihood of a price breakout in any way.
Bitcoin $71,019 may soon reach a significant price crossroads, as its average price over three separate time frames has dropped into a tight cluster, indicating a probable breakout.
“After some nice coiling pricing action since March, my boring Bitcoin Trend model triggers,” Real Vision’s head crypto analyst Jamie Coutts stated in a June 4 X post after spotting Bitcoin’s comparable average price.
On June 4, the Simple Moving Average (SMA), which estimates the average of prior prices within a specific time window, showed convergence throughout three separate periods: five days, thirty days, and fifty days. All three intervals were between $65,000 and $68,239.
This signifies minimal volatility over an extended period to traders and often stimulates hopes for a future breakout, yet tight consolidation can also result in a price retracement.
Bitcoin is currently a “Strong buy,” according to TradingView’s Moving Average Indicator. This indicator considers both the SMA and the Exponential Moving Average, a somewhat distinct indicator that focuses a greater emphasis on recent prices.
Trading above the moving average is a positive indicator for traders, implying that the moving average might become Bitcoin’s new support level if the price declines.
On the same day, it briefly reached $71,040 before rapidly retreating, a critical price level that traders see as the next step towards reaching its all-time high of $73,679.
Meanwhile, throughout the last 30 days, Bitcoin has managed to stay above its major support level of $60,000, a critical benchmark keenly tracked by traders. However, it did not surpass $72,000, peaking at $71,946 on May 21.
While the price’s breakout path is undetermined, Coutts reaffirmed the large increase in the number of US banks “on the verge of collapse” during the first quarter of 2024.
On May 29, the Federal Deposit Insurance Corporation (FDIC) said that the number of banks on the “Problem Bank List” – a list used to track depository institutions at high risk of insolvency — increased by 21% in the first quarter of 2024, to 63.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.