Bitcoin experienced unexpected selling pressure at the close of the latest trading day, sparking predictions of a possible retest of support levels before achieving new all-time highs.
Bitcoin held steady around $71,000 on June 7, prompting analysis tools to predict a possible dip to lower levels.
This pattern followed a week of attempts to break through resistance just below its all-time highs, marked by sharp downward price movements. On June 5, BTC/USD briefly dropped to $69,600 before bouncing back.
Trading resource Material Indicators suggested that the market might be preparing for a more noticeable return to the crucial support level around $69,000.
“Both Trend Precognition algorithms are showing new trading signals indicating that it may be time to retest local support,” it noted, referring to its proprietary trading indicators in a post on X.
“For me, a move back to $71.6k would invalidate this, and a strong Unemployment Report in the morning could trigger such a move,” the post continued.
Material Indicators co-founder Keith Alan expressed that he would be “very happy” to see $69,000 tested as a critical support level, part of a resistance/support flip by bullish traders.
“With the 21-Day Moving Average around $68.8k, technical support is strong. However, a lower-than-expected Unemployment Report or sudden market drop could push prices lower and impact late long positions,” Alan concluded.
Alan referenced upcoming U.S. unemployment data, known for its significant influence on BTC price volatility.
During the June 6 U.S. trading session, popular trader Skew observed substantial BTC sales from major exchanges Binance and Coinbase.
On Coinbase alone, Skew noted the sale of 2,000 BTC, questioning, “Who’s cashing out $100M+?”
Bulls managed to provide support just before the daily close, preventing a continuation of the “weakness” that Skew warned could have lasting negative effects on the BTC price trend.
BTC Price “Ready for Breakout”
Looking at the bigger picture, Michaël van de Poppe, founder and CEO of trading firm MNTrading, remarked that Bitcoin still hadn’t broken out of its current range, despite showing signs of strength recently.
Summary Review: Bitcoin’s recent price movements indicate a potential retest of the $69,000 support level before reaching new all-time highs. The unexpected selling pressure and subsequent market analysis suggest that BTC may need to consolidate further. The upcoming U.S. unemployment report could play a significant role in influencing Bitcoin’s price volatility. Despite these fluctuations, the market shows signs of resilience, with bulls ready to defend key support levels. As experts like Michaël van de Poppe highlight, Bitcoin remains poised for a breakout, although it has yet to escape its established trading range.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
