BTC Prices At A Crucial Price Level: Will Bulls Take Over?

As BTC bulls attempt to reverse losses posted last week, one analyst, citing technical candlestick formation and the reaction at the 200-day moving average

BTC price action is at a critical juncture as bulls attempt to reverse last week’s losses. However, technical analysis suggests that sellers have the upper hand for now.

BTC Price Analysis

Last week’s price action was crucial as BTC bulls attempted to reverse losses and stage a recovery. However, technical analysis suggests that sellers have the upper hand for now.

One analyst pointed out a key formation on the daily chart, highlighting the battle between bulls and bears. The analysis, posted on X, showed BTC dipping and closing below the 200-day moving average. This moving average acted as critical support, anchoring buyers throughout the last bull cycle from October to mid-March.

The rally was sustained, and though the level was not retested until late June, when prices were weak across the board, the break last week was critical.

Crucial Resistance Levels For BTC

Despite the bearish development, the analysis noted that last week’s break was clear. However, there is hope for bears because there has been no confirming bear bar.

For this to happen, prices must break below $56,500 and sink below $53,500, marking last week’s low. When this happens, it will be official that bears are back, and sellers will likely continue pushing lower in a bear trend continuation formation.

On the other hand, if BTC is to turn around, it is crucial that prices reject last week’s losses and break higher, closing above the 200-day moving average. This recovery will be the bullish signal that may mark the start of a leg up, resuming the uptrend of Q1 2024.

For now, traders are watching the psychological line at $60,000 and, ideally, the close above $66,000. In that event, Bitcoin might find the momentum to retest $72,000–an important liquidation level.

Spot Bitcoin ETF Inflows Under Scrutiny

Even amid the optimism, traders are closely watching inflows to spot Bitcoin exchange-traded funds (ETFs), especially in light of the sustained dump by the German government. The sell-off has been heaping more pressure on BTC, capping gains, and deflating the upside momentum.

If sellers are persistent and mirror recent trends, there could be more blood, and spot Bitcoin ETF issuers might register outflows.

Earlier, we reported that BlackRock, Fidelity, Grayscale, and other top issuers posted outflows in the past few weeks, particularly in June, when prices fell, accelerating the downtrend.

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