Watch Out for These Levels in Bitcoin's Price as Investors Search for New Catalyst
Bitcoin (BTC) shed more that 12% in the second quarter as investors appeared to sit on the sidelines looking for a new catalyst to counter dwindling spot Bitcoin exchange-traded fund (ETF) inflows and uncertainty about when the Federal Reserve might starting cutting interest rates.
Despite softening sentiment, Bitcoin bulls may find solace that the digital asset has returned an average of 7% in the month of July between 2013 and 2023, according to data from crypto analytics site Coinglass.
Below, we use technical analysis to spot key levels of interest on Bitcoin’s chart that investors may be watching this quarter.
Since reaching its record high in mid-March, Bitcoin has oscillated within an orderly trading range on below-average volume, highlighting a lack of enthusiasm by market participants.
In recent weeks, BTC continues to trade near the lower portion of the range, with the relative strength index (RSI) moving towards oversold levels, indicating weakening price momentum. Amid a breakdown below the range’s lower trendline and 200-day moving average, investors should monitor three key levels.
Firstly, it’s worth keeping an eye on the $53,000 area, a region on the chart that could attract buying interest around a period of consolidation as Bitcoin trended higher throughout February.
A close below this level could see a move down to around $44,000, where the cryptocurrency would likely find support from price action between December 2023 and February this year.
A more significant correction could see the digital asset’s price revisit the $38,000 level, which sits near a four-week period of consolation that formed as part of the broader uptrend in November last year.
Despite the technicals pointing to near-term
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