Analyst Says Bitcoin Poised For Breakout After Landing on Major Support

As Bitcoin (BTC) dropped below $65,000 during early Asian trading hours on Tuesday, an analyst projected that the digital asset had entered a strong support zone that could see it bounce back.

BTC Enters Key Support

The analyst, Hawk of Crypto, shared the In/Out of the Money indicator from IntoTheBlock, which shows strong support for BTC between $62,000 and $65,000 (S1+S2). The indicator shows that over 3 million addresses bought BTC in this range.

Looking at the $BTC price action and correlating it against the buy zones, it shows that the 62k to 65k zone is a big support (S1+S2). In this range, there are more than 3 million addresses that bought #Bitcoin. From, the volume perspective, the 63.7k to 65.6k is a huge support… pic.twitter.com/qr0znWXs7X

— Hawk Of Crypto (@HawkOfCrypto) June 17, 2024

As the analyst pointed out, the area between $63,700 and $65,600 (S1) is also a huge support from the volume perspective. On-chain data shows that the area boasts a cumulative volume of around 730,00 BTC, further solidifying it as a potential buying zone.

While Hawk acknowledged the possibility of a price drop below this support, he believes it will require significant selling pressure.

“I am not saying that these levels cannot be breached but it will take one hell of a push to go below this zone,” Hawk stated on X.

He concluded that BTC might see a bounce from the major support zone around $64,500, the average purchase price within the S1 zone.

BTC Hits One-Month Low 

The latest analysis comes as the price of BTC moved from its daily high of $67,000 down to around $64,500, hitting a one-month low on Tuesday. This price action has partly been triggered by the continued outflows from spot Bitcoin exchange-traded funds (ETFs) over the past week.

According to data from SoSoValue, spot Bitcoin ETFs recorded a net outflow of $146 million on June 17, marking the third consecutive day of outflows and the fifth outflow seen over the past six trading days.