Bitcoin rallied sharply, bouncing 13.25% from its recent local low below $60,000 to approach $67,000 again on June 15. Analysts note that improved risk sentiment in global markets following a preliminary ceasefire deal between the US and Iran, combined with a retreat in oil prices easing inflation worries, contributed to this recovery in the cryptocurrency market.
Potential double bottom in technical outlook
On the three-day Bitcoin chart, a possible double bottom reversal pattern has formed near the key $60,000 support level. This marks the second time in 2024 that BTC has rebounded from this range, indicating that buyers continue to defend a demand zone that has proven to be resilient during previous corrections.
The initial bottom occurred during the March pullback, while the most recent bounce followed a sharp sell-off in June. As long as Bitcoin stays above $60,000, the double bottom structure may remain in play. The neckline for this formation lies close to $81,000, and a decisive close above that mark could open the door to a measured move targeting $108,000 as early as August or September.
If Bitcoin stays above the $60,000 support, the double bottom structure is likely to hold; a strong close above $81,000 would technically validate a scenario that targets $108,000.
Weekly RSI signals possible bullish scenario
The weekly chart is showing positive divergence between the Bitcoin price and the Relative Strength Index (RSI). Although BTC has posted lower lows between $60,000 and $65,000, the weekly RSI has made a higher low, suggesting that downward momentum is losing steam even as selling persists.
A similar divergence was seen near the market bottom of the 2022 bear cycle, where the RSI rebounded before a broader upward move in the following months. Analyst Jelle recently commented that Bitcoin could follow a pattern reminiscent of late 2022 in the months ahead, with the current setup strengthening this possibility.
Analyst Jelle believes Bitcoin may repeat the late 2022 pattern in the coming months, with the present technical conditions increasing the likelihood of such price action.
Immediate resistance at $66,700 takes focus
Despite the bullish medium-term outlook, short-term risks remain. BTC is now testing a resistance zone around $66,700, which combines the upper trendline of a bear flag with the 20-day exponential moving average. Failure to break above this level could trigger a pullback to the lower trendline near $63,600.
A daily close below the lower trendline could confirm a bearish breakout of the flag, with technical analysis suggesting a downward target as low as $53,850. Declining trading volumes while this formation develops also support the view that any rebound may be more of a correction than a full-fledged reversal of the trend.
Whale activity increases selling pressure
On-chain data backs the cautious short-term outlook. According to CryptoQuant analyst Darkfrost, the recent correction has been accompanied by a noticeable rise in the amount of Bitcoin transferred by large holders to Binance. Wallets holding more than 100,000 BTC have averaged daily transfers of 3,200 BTC to exchanges over the past month, up from 1,200 BTC at the end of April.
CryptoQuant is a well-known analytics platform that monitors on-chain market data. The increased inflows from “whale” wallets—those holding significant amounts of cryptocurrency—are closely watched since they can signal an upswing in potential selling pressure on BTC.
Darkfrost indicated that during the recent drop, many large investors appeared to either increase their actual sales or express willingness to sell BTC holdings.
