Bitcoin Bulls Celebrate, But Warning Signs Remain

Add TechGaged as your preferred source on Google

See more TechGaged stories across Google News and Discover.

Add

Bitcoin (BTC) extended its recovery on June 16 and held above $66,000 after June 15’s wide crypto rally lifted sentiment across digital assets, but there are some warning sings. Most major cryptocurrencies remained in positive territory, though several analysts cautioned that the market may not have reached its final bottom. Though momentum has improved, some believe Bitcoin could still experience one last capitulation before the next sustained advance begins.

Bitcoin Holds Above $66,000 as Rally Continues

Indeed, Bitcoin traded around $66,300 during the June 16 session after reclaiming levels last seen nearly two weeks ago. The recovery follows renewed buying across the crypto market, as several large-cap altcoins also posted solid gains.

At press time, the price of BTC stood at $66,356.03, which represents a 0.3% increase on the day, a gain of 5.9% across the past week, and a 15.2% decline over the month, according to the most recent chart information.

Despite the stronger price action, analyst Doctor Profit argued that Bitcoin’s weekly chart resembles the structure seen shortly before the 2022 FTX collapse.

According to his analysis, Bitcoin is once again forming a bullish divergence on the weekly timeframe as the price attempts to recover. He noted that a similar setup appeared before the final capitulation during the previous bear market, when many traders bought the initial rebound only to sell during the subsequent collapse.

Doctor Profit believes the current divergence reflects improving buying pressure but says it could still precede one final washout before a durable market bottom forms. He added that he remains prepared to buy Bitcoin at substantially lower prices if such a move occurs.

Analysts Watch $48,000 Long-Term Support

Another widely followed analyst, Ali Martinez, highlighted Bitcoin’s Cumulative Value Days Destroyed (CVDD) metric, which has historically aligned with major cycle bottoms.

According to Martinez, the CVDD level currently sits near $48,000. Previous bear markets have found long-term support after Bitcoin reached that level before beginning new bull market cycles.

Though Bitcoin is trading well above that threshold following its recent recovery, Martinez suggested the metric remains an important reference point if the market experiences another deeper correction.

Bitcoin now continues to hold above $66,000, and traders are closely watching whether the recent recovery develops into a sustained breakout or whether the warnings of another capitulation event ultimately play out.

The post Bitcoin Bulls Celebrate, But Warning Signs Remain appeared first on TechGaged.com.