Bitcoin (BTC) Analysts Observe Key Support Levels and Potential Rebound Despite Bearish Sentiment

Amid the recent turmoil caused by selling activities, signs of stability and potential recovery are emerging. Notably, Rekt Capital and Ali Martinez

Bitcoin price analysis: support levels observed, potential rebound despite bearish sentiment

Bitcoin price is showing initial signs of stability following a significant crash. Could a bullish divergence lead to a trend reversal?

Bitcoin price is gradually approaching the downtrend, which is signified by a light blue trend line on the chart. This trend line, showing lower highs and lower lows, marks a critical resistance level. Additionally, the red-shaded area around the $72,500 level indicates a major resistance zone.

However, Rekt Capital also observed a bullish divergence in the RSI (Relative Strength Index). This divergence, where the price makes lower lows while the RSI makes higher lows, suggests a weakening selling momentum. If this bullish divergence plays out, we could see Bitcoin challenging and potentially breaking through the downtrend, which would signal a reversal.

Reclaiming Support Levels Amid Fake Breakdowns

In a separate analysis, Rekt Capital pointed out Bitcoin’s ability to reclaim a crucial support level. The horizontal line around $56,758 on the chart, which was breached during a fake breakdown, has now been reclaimed.

This fake-out saw the price briefly dipping below this support level before quickly recovering, which indicates strong buying interest at this price point.

Furthermore, Rekt Capital also identified two significant resistance levels at $61,000 and $71,000. Bitcoin’s recent price movements, especially its ability to stay above the purple support level, suggest a positive market sentiment. However, to confirm a bullish outlook, we need to see Bitcoin breaking through these immediate resistance levels.

Short-Term Analysis by Ali Martinez

In a short-term analysis, Ali Martinez noted that Bitcoin is trading within a well-defined parallel channel. This channel, marked by two black lines on his chart, indicates the upper and lower boundaries. Currently, Bitcoin is near the channel’s lower boundary, around $57,200 to $57,400, which acts as support.

On lower time frames, #Bitcoin is currently trading within a parallel channel. As $BTC hovers near the channel’s lower boundary, the TD Sequential indicator flashes a buy signal, suggesting a potential rebound to around $58,300! pic.twitter.com/qe05Y6M0BY

— Ali (@ali_charts) July 9, 2024

Additionally, Martinez highlighted the TD Sequential indicator, which is flashing a buy signal. This indicator suggests the current downtrend might be nearing exhaustion, and a rebound could be imminent. The potential rebound target is around $58,300, closer to the mid-range of the channel.

Market Sentiment and External Influences

The broader market sentiment around Bitcoin has been notably bearish, influenced by expected selling pressure from Mt. Gox creditors and the German government. However, market intelligence firm Santiment predicts a likely rebound, which could catch the market off-guard.

Despite fears of a sharp sell-off due to Mt. Gox repayments, analysts like CryptoQuant’s Ki Young Ju suggest that the movement of 47,000 BTC may not impact the market as expected. He outlined three scenarios, including internal transfers for security, that may explain the recent on-chain movements.

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