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Analyst Says Bitcoin Poised For Breakout After Landing on Major Support

The analyst eyes a potential bounce for the price of BTC as the digital asset finds support in a key zone.

Avatar image of Lucky Ebosele Lucky Ebosele•June 18, 2024

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.

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.

Lucky Ebosele

Lucky Ebosele is an avid writer with over two years of experience covering cryptocurrencies and blockchain tech. He is constantly researching the latest trends and developments in the space. Away from crypto, he loves everything football.