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Bitcoin Holds Steady at $71,000 Amid Predictions of Testing Lower Support Levels

Bitcoin‘s price maintained a steady position at $71,000 on June 7, even as analytical tools indicated potential tests of lower price levels soon.

The day’s trading data, as per Cointelegraph Markets Pro and TradingView, highlighted a bounce in Bitcoin’s value after it touched intraday lows of $70,120 on Bitstamp, just before the daily trading session concluded.

This trend of quick recoveries from lower values persisted throughout the week, marked by sharp downturns and subsequent rebounds.

A significant dip occurred on June 5 when Bitcoin’s price momentarily dropped to $69,600, only to recover later.

Material Indicators, a trading resource, noted this pattern, suggesting an impending test of the $69,000 support level.

They shared, “Both Trend Precognition algos are showing new #TradingSignals indicating that it may be time to retest local support,” in a social media post.

Keith Alan, co-founder of Material Indicators, expressed optimism about reaching this key support level, stating, “For me, a move back to $71.6k invalidates, and a hot Unemployment Report in the morning could be a catalyst for a move like that.”

He further emphasized the psychological significance of the $69,000 level, suggesting that its breach could confirm a bullish support-resistance flip.

Further adding to the analysis, Alan highlighted the impact of upcoming U.S. unemployment data, known to affect Bitcoin’s volatility.

During June 6 trading, Skew, a prominent trader, reported substantial Bitcoin sales on exchanges like Binance and Coinbase, including a single transaction of 2,000 BTC on Coinbase.

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Despite these sales, the market showed resilience, with bulls stepping in to prevent a further slide, as Skew had earlier warned could have more severe implications for Bitcoin’s pricing trend.

Michaël van de Poppe, CEO of MNTrading, noted that despite signs of strength, Bitcoin had not yet managed to exit its established trading range.

He remarked on social media, “Bitcoin is still stuck within the range, but very heavily ready for a breakout upwards to a new all-time high,” signaling a cautious optimism for a forthcoming surge.

Alan pointed to market manipulation by large investors, or ‘whales’, as a significant factor restraining Bitcoin’s ascent towards record highs.

He accused them of keeping prices low to protect their short positions, particularly noting a concentration of short positions between $71,500 and $75,000.

CoinGlass data indicated that $71,900 was a key focus for traders, representing a significant point of liquidity just above the current market price.

This observation suggests that Bitcoin’s price movements remain closely watched, with various factors influencing its short-term trajectory.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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