Bitcoin ‘coiling’ up for a huge move as it hovers around $71K

Bitcoin (BTC) may soon find itself at a critical price crossroads as its average price across three different time frames has now fallen within a tight cluster — signaling a potential breakout.

“After some nice coiling pricing action since March, my boring Bitcoin Trend model triggers,” Real Vision’s chief crypto analyst Jamie Coutts said in a June 4 X post after flagging Bitcoin’s similar average price across three short-term periods, which have all fallen within a 5% range.

On June 4, the Simple Moving Average (SMA) — which calculates the average of past prices within a specified time window — indicated a convergence across three different periods, the 5-day, 30-day, and 50-day periods. All three intervals fell between $65,000 and $68,239.

This signals low volatility over an extended period of time to traders and typically raises hopes for a potential breakout, though the tight consolidation can also lead to a price retrace as well.

Bitcoin’s three Simple Moving Average’s are converging. Source: Jamie Coutts

Bitcoin is currently a “Strong buy,” according to TradingView’s Moving Average Indicator. This indicator takes into account both the SMA and the Exponential Moving Average, a slightly different indicator that places higher weight on more recent prices.

Bitcoin is currently trading above the three SMAs, at $70,840, according to data from CoinMarketCap.

Trading above the moving average is a favorable sign for traders, suggesting that the moving average could serve as Bitcoin’s new support level if the price falls.

On the same day, it briefly reached $71,040 before quickly retracing, a crucial price level that traders are eyeing as the next step toward reaching its all-time high, $73,679.

Meanwhile, over the last 30 days, Bitcoin managed to hold above its key support level of $60,000, an important threshold closely watched by traders. However, it didn’t quite reach $72,000, peaking at $71,946 on May 21.

Bitcoin is up 11.93% over the past 30 days. Source: CoinMarketCap

Related: Bitcoin dormant for 5 years or more awakens in new ‘distribution’

While the price remains uncertain regarding its breakout direction, Coutts reiterated the significant rise in the number of U.S. banks “on the brink of collapse” during the first quarter of 2024.

On May 29, the Federal Deposit Insurance Corporation (FDIC) reported that the number of banks on the “Problem Bank List” — a list used to track depository institutions at high risk of insolvency — jumped by 21% in the first quarter of 2024, reaching 63 banks.

After three banks collapsed in March 2023, Signature Bank, Silvergate Bank, and Silicon Valley Bank, Bitcoin’s price rose 35% over nine days to $27,050.

Magazine: Polygon never set out to beat Ethereum: Anurag Arjun, X Hall of Flame

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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