The Biggest Crypto Predictions for June 2023

Bitcoin (BTC) Will Drop to $25,000

The Bitcoin price broke down (red icon) from a head and shoulders pattern on May 11. The head and shoulders is considered a bearish pattern. As a result, the breakdown was expected.

However, the movement since the breakout has been unusual. Instead of falling sharply, the BTC price increased twice and even moved above the patterns midline once more on May 30. But, it decreased again shortly afterward.

Therefore, it is possible that the head and shoulders pattern was not valid.

So, the next most likely pattern is a descending parallel channel. If correct, the price was rejected by its resistance line (red icon) on May 31, initiating the current downward movement.

The decrease could take the price to the channel’s support line at $25,000. This is also the 0.382 Fib retracement support level when measuring the entire previous upward movement. So, it is a very likely level for a bottom.

The RSI movement also supports this possibility. By using the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true. The indicator is below 50 and falling, a sign of a bearish trend.

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Author: Valdrin Tahiri

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