Following Bitcoin’s (BTC) ongoing attempts to establish its price above the $65,000 support zone, a trading expert believes that technical analysis points to a more bearish scenario.
In a TradingView post on June 18, the expert, Alan Santana, noted that Bitcoin has faced a “strong rejection,” setting the tone for a bearish trend.
Santana highlighted a double top pattern formed on May 21 and again in early June. This pattern typically signals a reversal from a bullish to a bearish trend, further reinforcing Bitcoin’s negative outlook.
Additionally, the expert noted that a consistent decrease in trading volume supports the bearish sentiment, as lower volumes often indicate weakening buying interest, paving the way for a price drop.
Price levels to watch
In this line, Santana pointed out that the accumulating bearish signals suggest a new low for Bitcoin. He noted that Bitcoin’s immediate support levels are projected at $62,470, with a more critical level at $59,883. The last significant low was recorded at $56,552, and Santana predicts that Bitcoin could fall to this level and possibly further to $55,000, $52,000, or even $50,000 in the short term.
Looking ahead, Santana forecasts a major momentum shift around June 21-23, suggesting heightened volatility and the potential for substantial price movements.
“Today’s price action for Bitcoin was characterized by a strong rejection. <…> We have bearish signal after bearish signal. <…> This points to a new low happening soon. The last low is set at $56,552,” the expert noted.
Regarding critical levels to watch, the analyst noted that if Bitcoin breaks below $59,856, it may test the previous low of $56,552. Conversely, if the price breaks above the descending channel, it could signal a potential reversal, but strong resistance around $67,485 must be overcome.
At the moment, Santana’s analysis aligns with the overall bearish sentiment surrounding Bitcoin after the maiden crypto failed to reach the $70,000 mark. For instance, as reported by Finbold, another analyst, TradingShot, warned that Bitcoin might be in line for further capitulation if the $61,000 support zone fails to hold.
Bitcoin price analysis
By press time, Bitcoin was trading at $65,430 with daily losses of about 0.30%. On the weekly chart, Bitcoin is down over 4%.
Overall, it has been a challenging week for Bitcoin, characterized by significant drops and failed recovery attempts. The resistance at $67,000 and the critical support level at $65,000 will be key areas to watch.
If Bitcoin continues to struggle below these levels, it may confirm a bearish trend and potentially lead to lower price levels in the near future.