Bitcoin Oversold? This Key Support Could Present a Great Dip-Buying Opportunity

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Bitcoin Oversold? This Key Support Could Present a Great Dip-Buying Opportunity
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Market Analysis by Investing.com (Günay Caymaz) covering: BTC/USD. Read Investing.com (Günay Caymaz)'s Market Analysis on Investing.com

Bitcoin's rally stalled in May, finding support around $60,000 but struggling to break past $70,000 resistance.Bitcoin

Over the past four days, sellers have dominated the market, forcing Bitcoin to retreat towards its intermediate support at $65,000. This level is crucial as it represents the first major support zone based on Bitcoin's strong performance in the first quarter . Additionally, it coincides with the 21-day Exponential Moving Average and the May trendline, further strengthening its significance.

Should Bitcoin overcome this resistance with a weekly close above $73,000, the $77,000-$83,000 zone emerges as the nearest short-term target. The recent return of net inflows into spot ETFs presents a significant positive development. However, broader institutional demand for Bitcoin hinges on global factors.

More importantly, increased adoption within the crypto sector due to these developments could have a positive indirect impact on Bitcoin in the medium term.If Bitcoin can maintain momentum above $65,000, a surge in buying pressure could lead to a decisive break above the resistance line around $73,000. Conversely, a drop below $65,000 could signal an extension of the current consolidation phase.

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