Bitcoin Price Formed Evening Star at Supply Zone; $60K Mark Soon?

• The Bitcoin price has faced rejection from the $72 mark multiple times.
• Its trading volume has surged by 200% this week.

The chart structure displays that the Bitcoin price has performed positively since 2023 and is up by more than 300% till now. After a strong bullish momentum, the BTC price reached an all-time high of $73,794 in mid-March.

After reaching ATH, the Bitcoin price dropped by 15% in just 5 days due to the profit booking in the short term. It has faced resistance from the $72K hurdle 5 times and reacted negatively. 

Buyers seem exhausted, and the price is consolidating in a parallel channel. At the beginning of May, the BTC crypto slipped below the channel. However, the buyers were strong enough to lift the price to the channel. Due to the fake breakout, the price showed strong buying momentum and reached the major resistance level of $72K.

When writing, the Bitcoin price traded at $69.33K with a neutral momentum. Its market capitalization is $1.36 Trillion, and it ranks 1st in the cryptocurrency market in terms of market capitalization. The 24-hour trading volume is $34.40 Billion, up by 32%.

Price vs Volume Analysis

Since March, the trading volume has kept declining, and the price has undergone a consolidation phase. The trading volume has increased by 200% in a week, and the price has slightly risen. A massive surge in trading volume may support the breakout.

Bitcoin Price Has Stuck in a Channel; Breakout of Profit Booking?

Bitcoin price has struggled in a parallel channel for the past 3 months. In May, the digital asset price has extended from major support to resistance level. The hurdle of $72K is working as a supply zone, and sellers appear strong here.

Recently, the price has developed an evening star in the supply zone and has dropped to the 20-day exponential moving average. Suppose the BTC price slips below the 20-day EMA and sustains, sellers may drag down the price to the $60K level.

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Alternatively, the breakout from the parallel channel may result in a bullish momentum for the short term. The rise in the trading volume at the time of the breakout might support the bullish trend for the long term.

The assessment of technical indicators shows that the BTC price is trading over the key moving averages. It indicates the bullish momentum. 

Can Bitcoin Price Trigger a Breakout from the $72K Level?

They want you to believe #Bitcoin won't break through this level.

And yet, it just keeps pushing back into it — with massive ETF demand, and neutral funding.

Matter of time. Higher. pic.twitter.com/O7OXoW0Ah0

— Jelle (@CryptoJelleNL) June 7, 2024

A source on X claims that big players are not letting us believe that the BTC price may exceed a major resistance level of $72K. Because of the consolidation for a longer time, the BTC price may display strong momentum after the breakout.

Conclusion

The recent price action and trading volume of Bitcoin indicate a potential struggle at the $72K level, with the formation of an evening star pattern at the supply zone. It suggests a possible move towards the $60K level if the price slips below the 20-day EMA and sustains. However, a breakout from the parallel channel could lead to bullish momentum in the short term, supported by a rise in trading volume. Technical indicators show a bullish momentum, and a breakout from $72K could lead to a strong uptrend. 

Technical Levels

Bitcoin price may face resistance from the $72K and $80K hurdles. It could take support on the $60K and $55.50K levels.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.