Key Points
- Bitcoin’s price has dropped by 2% in the last week, with market indicators suggesting slow movement ahead.
- Despite the sluggish price action, some analysts predict a potential rally in the coming days.
Bitcoin’s [BTC] price action has been bearish at the start of June, causing some investors to question the coin’s future. However, this slow movement may not necessarily signal a downturn, as it could be the calm before a significant rally.
Is Bitcoin About to Turn Bullish?
Bitcoin’s sluggish price action has been ongoing for some time, leading to a 2% loss in value over the past week. According to CoinMarketCap, BTC was trading at $67,735.81 with a market capitalization exceeding $1.33 trillion at the time of writing.
However, Mags, a well-known crypto analyst, shared a tweet suggesting the potential for a change. He pointed out that BTC’s price, after surpassing the last monthly resistance in March, has now turned that level into a support. Over recent months, the price has remained steady above the previous all-time high.
Signs of a Potential Rally
In a market uptrend, it’s common for the price to remain steady before a significant move. For instance, from March to September 2023, the price stayed flat for seven months before breaking out and surging by 178%.
Mags suggests that this kind of sideways movement often precedes a substantial move. If a similar 178% surge occurs after the current range breakout, we could see Bitcoin reach $188,000.
AMBCrypto analyzed Bitcoin’s metrics to better understand whether it is set to test its all-time high in the coming days. The analysis revealed that BTC’s net deposit on exchanges was high at press time, indicating high selling pressure. Additionally, the aSORP was also red, suggesting that more investors have been selling at a profit.
However, Bitcoin’s binary CDD showed that long-term holders’ movements in the last seven days were lower than average, indicating a motivation to hold onto their coins.
The analysis of BTC’s daily chart suggests that it could test its all-time high soon. The MACD indicated a bearish crossover, and its Relative Strength Index (RSI) also moved sideways, hinting at a few more slow-moving days. Despite this, BTC continued to trade above its support at $66.9k, suggesting a potential price increase in the coming days.
