Based on the price action clusters above the $71,600 mark, Bitcoin’s price could be on track toward a further correction. How low will Bitcoin price go before the parabolic phase begins?
BTC price clusters above $71,600 suggest correction likely
Bitcoin price clusters refer to the tendency of the asset’s prices to cluster near round numbers. The BTC price cluster formed near the range high of $71,600 suggests more potential downside action, according to popular crypto analyst Rekt Capital.
The analyst wrote in a June 17 X post to his 477,000 followers:
“When Bitcoin forms clusters of price action near the Range High resistance at ~$71600… These precede downside into lower levels of the range.”
Bitcoin price rose to a range high of $71,949 on June 7 before falling to the current $65,393 mark. The world’s first cryptocurrency is down 5.7% on the weekly chart, according to Bitstamp data.
Last dip below $64,000 before rally resumes?
Bitcoin price may need to correct below the $64,000 mark for a healthy reset before the “parabolic phase” of the bull cycle can begin, according to Rekt Capital:
“You could argue that Bitcoin has already filled the Daily CME Gaps at ~$64,000 (blue) and ~$62,500 (orange). And yet, Bitcoin is getting very close to retesting both of them again.”
However, a technical formation on the monthly chart suggests that Bitcoin could fall below the $60,000 mark, according to popular trader Titan of Crypto, who wrote in a June 16 X post:
“Many are now pointing the 2monthly chart shooting star… The 3-monthly chart is as relevant and the candle doesn’t look that bad imho. As you may know the higher the timeframe the more relevant it is. $58,800 is the level to watch by 1st July.”
A look at Bitcoin’s relative strength index (RSI) suggests that Bitcoin’s price may need to cool down further before resuming another leg up.
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Bitcoin’s RSI stood at 41 on June 17, suggesting that the asset is trading at fair value. However, Bitcoin’s RSI fell to 33 during the last major correction on May 1, when Bitcoin price fell to $56,600 — before resuming its bullish momentum.
The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
Liquidation levels suggest that Bitcoin has significant support at the $64,500 mark. A potential move below this level would liquidate over $520 million worth of leveraged long positions, Coinglass data shows.
However, the cost basis for short-term holders (STHs), or entities holding BTC for up to 155 days, suggests that Bitcoin could find its footing above the $62,200 mark.
Bitcoin’s realized price for STHs stands at $62,200, CryptoQuant data shows.
Since the STH cohort represents the more speculative end of the BTC holders, their realized price could signal the next major support level for Bitcoin price.