Bitcoin (BTC) is currently trading at $26,703, remaining in familiar territory as it enters the second week of June. However, many investors believe that a breakout is imminent and are anticipating a return of volatility to the market.
Despite the calm weekly close, traders are preparing for significant shifts in the Bitcoin market. While there aren’t any major macroeconomic events expected this week that could directly impact BTC’s price, market participants are looking elsewhere for indicators of short-term price movements.
On-chain analysis of Bitcoin provides additional insights that support the notion that the spot price of Bitcoin is currently the least exciting aspect of the cryptocurrency. There are likely other factors and indicators that are influencing the market sentiment and investor behavior.
Overall, traders and investors are closely monitoring BTC/USD as it hovers around the $27,000 level, anticipating potential price movements and looking for cues to guide their decision-making.
Despite BTC/USD’s recent lackluster performance, some popular traders are becoming more optimistic and foresee the potential for a breakout towards $30,000. Trader Jelle, among others, highlighted the importance of the 200-week moving average (MA) as a key support level that has remained intact. Additionally, support structures on daily timeframes, as identified by trader and analyst Rekt Capital, are still holding.
While a bearish “head-and-shoulders” pattern from previous weeks remains a concern, there has been whipsaw action around the neckline, indicating potential volatility. The pattern will remain valid unless the price surpasses the right shoulder. One analysis suggests a potential downside target of $24,000 due to the head-and-shoulders pattern.
On the other hand, some traders, like Crypto Tony, are anticipating less movement and have set their sights on $25,300 as a potential target if the resistance at $28,350 remains unbroken.
Overall, the market sentiment is mixed, with some traders anticipating a breakout towards $30,000, while others are more cautious, looking for potential downside targets or expecting limited movement in the short term.
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