Bitcoin (BTC): the end of the bear market? June 16 Technical Analysis

Bitcoin closed in the green yesterday, but whether this rise is enough to signal the end of the bear market remains to be seen. Certain conditions must be met to confirm this hypothesis.

Are all the conditions met?

However, it seems that all these conditions are not yet in place to anticipate the end of the current Bitcoin (BTC) bear market.

Yesterday’s recovery was significant on a smaller scale, but insignificant on a larger scale. Indeed, yesterday’s green candle was not long enough to engulf the decline that occurred on Wednesday. This is visible on the Bitcoin (BTC) daily chart. To reverse the downtrend, buyers will need to break through two resistance levels: first $26,565 and then the 50 moving average. As long as the price is moving below these levels, the downtrend may continue.

Additionally, the downward breakout of the descending triangle could indicate the continuation of the downtrend. This suggests that yesterday’s rise was only a slight retracement before bitcoin (BTC) experienced further dips. On the other hand, the daily RSI shows no signs of rising and is heading towards the oversold zone.

Bitcoin (BTC): levels to watch

Against this backdrop, the current structure and pattern of Bitcoin (BTC) suggests that the bear market may persist. To consider a return of the annual bull-run, the price will have to rebound significantly from a critical support.

Among the support levels to watch, the 200-day moving average currently sits at $23,800. Just below this average is another major support at $23,334. The area around these supports could therefore represent an interesting buying opportunity. If the price reacts strongly to any of these support levels, accompanied by a divergence of the RSI, it could indicate the end of the bear market.

In this context, given the current decline, it seems more appropriate to take a short position in Bitcoin (BTC).

Admission: $25,700;

Stop: $26,170;

Goal: $23,800.