This Indicator Points To A Bitcoin Bottom, $50K Next Target?

Best Owie

Last Updated: June 11, 2024 2:11 pm

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin has been on a downtrend recently and although it has had multiple recoveries, it is still a long way off from its all-time high. There are a number of indicators that point towards bullish and bearish trends, but mainly seem to stand in the middle. One indicator seems to point to the further upside coming, adding as much as $6K to the price of the digital asset.

What The Daily OBV Chart Says

A crypto education and market analysis account on Twitter recently posted a chart mapping out what the daily OBV chart might be saying for bitcoin. Mapping out previous movements on this chart, Income Sharks shows that the digital asset has once again touched an important point that could cause it to grow further. The last time the cryptocurrency had made this move in the chart was in July 2021.

We’ll recall that July/August was an important time period for the digital asset. This was the first time that bitcoin had hit the $60,000 price point. It had grown from $30,000 to a new all-time high in a matter of weeks, all of which started with a double bottom made by bitcoin on the OBV chart. Now, bitcoin has once more hit the same pattern and if history is any indicator, it might be getting ready for another rally.

OBV chart shows bitcoin has hit bottom | Source: Income Sharks

As the digital asset has formed another double bottom on the chart, making a very sharp bullish double V spike, it could signal that a break above $50,000 is imminent. Not only is this an important signal, but it is also almost more bullish this time around. And what’s more, this could very well signal the bottom of the downtrend, suggesting that the digital asset may begin another bull rally.

Bitcoin Starting Another Uptrend

Bitcoin has once again entered another recovery trend that has put it above $44K. Although it had claimed this point earlier in the month, bears had successfully pulled it down, pushing it far away from the $46K price mark that would solidify its entry into another bull market.

The digital asset is now trading above its 50-day simple moving average. This shows that bears have lost hold of the market, but doesn’t completely eliminate the possibility of a slip downwards. Sentiment has skewed into majority buy but not by much.

BTC recovers above $44K | Source: BTCUSD on TradingView.com

From here, the next major resistance point is at 44,900, where bulls will most likely meet strong resistance from the bears. Bitcoin still needs to settle above $46K to eliminate risks of more downside. A slip from its current price will set it on a path down to $42K, where the 1st major support level rests at $42,665. Below that would see bulls fight for control at $41,339.

Bitcoin is currently trading at $44,080 at the time of this writing, after hitting $44,800 in the early hours of Wednesday. Outlook for the rest of the trading day remains bullish with BTC expected to close out the day above $44K once more.

Featured image from Finextra, chart from TradingView.com

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.