Bitcoin Price Prediction: BTC finds Support at $65,000, Hinting at Potential Recovery

Bitcoin price is trading 5% lower than its price seven days ago following an extended downturn that appears to have been stopped around the $65,000 demand zone.

The bulls are fighting to keep the price above this level, with several technical and on-chain metrics showing that BTC’s upside remains intact.

Data from market intelligence firm CryptoQuant shows that Bitcoin’s reserve on exchanges has been decreasing over the last month. According to the chart below, the number of BTC kept in known centralized exchange wallets dropped by 3% from 2.899 million BTC on May 18 to 2.828 million on June 17.

At the same time, Bitcoin’s price has increased by 7.7% over the same time period, according to data from TradingView. This suggests that decreasing supply on exchanges is a bullish metric for BTC’s price in the long term as it shows a lack of intention to sell among investors.

Additional data from IntoTheBlock reveals that Bitcoin has relatively robust downside support. Its In/Out of the Money Around Price (IOMAP) chart below shows that immediate support at $65,000 lies within the $64,018 and $65,975 price range, where approximately 753,000 BTC were previously bought by roughly 1.4 million addresses.

Any attempts to pull the price below the said level would be met by intensive buying from this cohort of investors who would love to see their profits increase.

Bitcoin price bulls need to defend the $65,000 level to abate further losses

At the time of publication, BTC price was trading at $66,178, down 0.21% over the last 24 hours. The latest drawdown has seen the big crypto lose key support levels, including the 50-day and 100-day exponential moving averages (EMAs) at $67,670 and $$66,900, respectively.

The price is sitting on immediate support provided by the ascending trendline at $66,000. A daily candlestick below this level would see the price drop to seek solace from the major support level of $65,000, described above.

Losing this level will see BTC drop toward the 200-day EMA at $64,247, which could be the last line of defense for the pioneer cryptocurrency. This would represent a 3% drop from the current price.This pessimistic outlook is supported by the downward trending RSI whose value at 43 suggests that the market conditions still favour the downside. Moreover, BTC is moving below all the major moving averages, adding to the sell-side pressure.

On the upside, if Bitcoin bulls successfully defend the support at $65,000, they will be bolstered to send the price higher, past the 50-day and 100-day EMAs toward the $70,000 psychological level.

Higher than that, the next logical move would be the $72,000 resistance level and, later, the all-time high at $73,835.

This pessimistic outlook is supported by the downward trending RSI whose value at 43 suggests that the market conditions still favour the downside. Moreover, BTC is moving below all the major moving averages, adding to the sell-side pressure.

On the upside, if Bitcoin bulls successfully defend the support at $65,000, they will be bolstered to send the price higher, past the 50-day and 100-day EMAs toward the $70,000 psychological level.

Higher than that, the next logical move would be the $72,000 resistance level and, later, the all-time high at $73,835.