Bitcoin Sold Off on News — But This Zone Could Trigger a Bounce

Jun 3

Over the past two or three days, Bitcoin(BTCUSDT) has largely been influenced by news, particularly news of Middle Eastern tensions between Iran and the U.S., and it has started to decline.

Currently, Bitcoin is moving near the support zone($66,400-$64,900) and the Potential Reversal Zone(PRZ)[$66,980-$66,340].

From an Elliott Wave Theory perspective, it appears that Bitcoin is completing its Wave 4, which may have a Zigzag correction(ABC/5-3-5).

I expect Bitcoin to rise from the PRZ and reach the Cumulative Short Liquidation Leverage($68,560-$67,550) .

First Target: Cumulative Short Liquidation Leverage($68,560-$67,550)

Second Target: $68,667

Third Target: $69,700

Stop Loss(SL): $65,377(Worst)

Cumulative Long Liquidation Leverage: $65,760-$64,920

What’s your view on Bitcoin? Will it continue its downward trend, or not?

💡 Please respect each other's opinions and express agreement or disagreement politely.

📌Bitcoin Analysis (BTCUSDT), 1-hour time frame.

🛑 Always set a Stop Loss(SL) for every position you open.

✅ This is just my idea; I’d love to see your thoughts too!

🔥If you find it helpful, please BOOST this post and share it with your friends.

Jun 4

Trade closed: stop reached

❌Stop Loss(SL) was touched

💡Transparency is always important to me, and I will announce if the Stop Loss(SL) is touched

💡Over the past four days, Bitcoin has been heavily influenced by Middle Eastern tensions, especially between Iran and the U.S., as well as a sudden drop in the S&P 500 index. As I’ve mentioned in previous ideas, when the S&P 500 makes sharp moves, Bitcoin’s correlation tends to rise. Consequently, Bitcoin has dropped over 15%, losing key supports one after another.

🔴Bitcoin has now lost a key support level around $67,300 after breaking major support lines, which could signal continued downside in the coming days. However, we might also expect a pullback to this important support level in the short term.

🌊From an Elliott Wave perspective, looking at Bitcoin’s daily chart, it seems to be completing its major Wave 3. I’ve highlighted the possible wave roadmap on the chart.

⏺In terms of support levels, given the large liquidation of long positions, we might anticipate support around round numbers, such as $60,000.

💸Also, note that the DXY index is on an upward trend, which could be further bad news for crypto markets, especially Bitcoin.

💡I expect Bitcoin, in the coming hours, to experience a short-term upward correction despite the strong recent drop. However, we need to keep an eye on the S&P 500 and Middle Eastern developments simultaneously. This might make things tricky for traders, given the many parameters to assess. Also, I expect Bitcoin to approach the heavy support zone in the days ahead; we’ll need to watch the momentum as it approaches.

What’s your view on Bitcoin? Can it drop below $60,000 or not?