With key indicators reaching record “oversold” levels, the price of Bitcoin fell to $374,000

Bitcoin (Bitcoin) Broke through the support level of $38,000 on June 18, but the reversal of the solid support level has allowed traders to seek new upside.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin buying wall faces major test

Data from Cointelegraph Markets Pro with Transaction view It shows that BTC/USD hit a local low of $37,200 on Bitstamp before rebounding.

As Cointelegraph Report, Thursday saw the emergence of an important support wall in Binance, the main exchange, about half of which remained at $36,500 as the “sand middle line.”

“BTC is retesting the wedge that it broke a few days ago,” popular trader Rekt Capital Explanation In his latest update.

As of June 18, BTC/USD trading levels on Binance. Source: Material Indicators/ Twitter

Although there is still the possibility of a further decline, the continued volatility near the $40,000 level makes commentators feel optimistic.Sources including Crypto Cobra are now Stare In the next few weeks or even days, the cryptocurrency market will see a more significant rebound.

This week Federal Reserve Meeting Although officials predicted that inflation would rise and postpone the reduction of unprecedented coronavirus-related interventions in the market, they did not boost market sentiment.

Trader Scott Melk pointed out that Bitcoin was almost unresponsive, while gold was sold to a six-week low. Although the outlook is ostensibly unfavorable for the US dollar, only the US dollar benefits.

“I like the rise in the dollar because the Fed has committed to printing money and quantitative easing for at least the rest of this year,” Melk Add to.

“We are living upside down.”

NVT hints at “oversold” Bitcoin

At the same time, the latest version of the classic indicator places Bitcoin firmly in the “oversold” zone at the current price.

According to Willy Woo, the creator of the on-chain analytics resource Woobull, the network transaction value (NVT) signal is now at a low level, which has been a rebound point in history.

related: Willy Woo believes that Bitcoin’s overall upward trend is not over

The NVT signal is based on the NVT ratio, which is a method of valuing Bitcoin using network valuation and transaction value, and the result is a moving average.Woo description NVT signal as a “more responsive” version suitable for traders.

“I have updated the NVT Signal to correct for the upward drift of the indicator (due to the removal of the transaction volume from the blockchain and there is only L2),” he said tell Twitter fans on Thursday.

“Yes, BTC is oversold at historical levels.”

Bitcoin NVT signal chart.Source: Wuble