Bitcoin Drops Below the $60,000 Threshold! Analysis of June 25, 2024
Following significant bearish pressure, Bitcoin plunged below $60,000. Let’s analyze together the future prospects of BTC price.
Bitcoin (BTC) Price Situation
After rejecting $72,000, Bitcoin faced selling pressure that gradually drove its price towards $64,000. It was below this level that the cryptocurrency’s price quickly slid to the $60,000 support, highlighted in the analysis of June 18. The Bitcoin drop seems to have ended since reaching $58,500, a price level where buying interest pushed BTC’s price above $60,000. Therefore, this phenomenon could leave hope to remain at this last level to continue its rise.
At the time of writing, Bitcoin is trading around $60,900. The Bitcoin price is now forming a double top, which is a so-called bullish reversal pattern. Currently, Bitcoin is below its 50-day moving average. This phenomenon questions the medium-long term structure of BTC.
Nevertheless, we can be reassured by the fact that Bitcoin still seems to be above the 200-day moving average. Regarding Bitcoin’s price dynamics, it seems obvious that it continues to weaken, as demonstrated by its own price and the oscillators. We can even see a bearish divergence on the latter. Thus, all these elements are not reassuring about the future of the cryptocurrency.
BTCUSD Daily Chart
The current technical analysis was carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market.
Zoom on Derivatives (BTCUSDT)
The open interest of Bitcoin perpetual contracts seems to have followed the price trajectory of its underlying asset. This demonstrates a position exit by speculators as Bitcoin’s price declines. This phenomenon can be explained by a capitulation of buyers, well illustrated by the recent liquidations. Indeed, this Monday, June 24, more than $69 million in forced liquidations from buyers coupled with a decline in open interest were recorded. Naturally, this can reinforce selling convictions, which is reflected in now negative funding rates.
Bitcoin Open Interest / Liquidations & Funding Rate
The liquidation heatmap of recent months indicates that the BTC/USDT has crossed a liquidation zone around $65,000. This zone was slightly defended but not enough to allow for a bullish continuation. Recently, it seems that the sensitive $60,000 zone was reached and sparked buying interest. Currently, the most significant liquidation zones in the past three months are above the current price: we can note $65,000, and higher at $67,500. Below, we can still note the $56,850 zone. If the market approaches these levels, we could witness a massive trigger of orders, potentially increasing the cryptocurrency’s volatility. These zones therefore represent major points of interest for investors.
BTC Liquidation Heatmap (3 months)
Hypotheses for Bitcoin (BTC) Price
As long as Bitcoin’s price manages to stay above $58,500, we can anticipate a return of BTC above $63,000. The next resistance to consider, if the bullish movement continues, would be the $65,000 zone. Higher, the $67,000 can be highlighted. At this stage, it would represent an increase of approximately 10%.
If Bitcoin’s price does not stay above $58,500, we could consider buyer’s interest support between $57,000 and $55,500. The next level to consider, if the bearish movement continues, would be around $54,500. Lower, we can highlight $52,000. At this stage, it would represent a near 14% decline.
Conclusion
Bitcoin has faced selling pressure pushing its price below the $60,000 threshold. While all indicators are red, it seems that the cryptocurrency has benefited from buying support that allowed it to regain this level, offering hope for a buyer’s comeback. Thus, Bitcoin is currently in an uncertain moment, which is why it will be crucial to closely observe price reactions at the various key levels to confirm or refute the current hypotheses. It is also important to stay vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are purely based on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.
