Bitcoin saw a decline below $68,000 on June 11th during the Asia trading session, with analysts predicting further price drops for BTC.
The lack of strong bid support contributed to Bitcoin’s weakness, leading to a 3% drop that saw the price dip to $67,320 on Bitstamp after the daily close. Despite attempts by Bitcoin bulls to prevent a downward trend, the lack of support at the crucial $69,000 level resulted in a move through low exchange order book liquidity.
Keith Alan, co-founder of trading platform Material Indicators, had previously cautioned about the insufficient bids, indicating potential trouble for Bitcoin’s price momentum. In a recent YouTube update, he highlighted the absence of significant bid concentration even down to $60,000.
A chart analyzing order book liquidity for the BTC/USDT pair on Binance accompanied Alan’s warning. Following the downward movement, Material Indicators confirmed that Bitcoin had rejected $69,000 as support and had also crossed below the 21-day moving average, a key short-term trendline.
The upcoming release of United States macroeconomic data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), along with the Federal Reserve’s interest rate decision and Chair Jerome Powell’s press conference, could potentially impact Bitcoin’s price action.
Various traders had mixed opinions on Bitcoin’s support levels. Credible Crypto, in his analysis, suggested that Bitcoin may not drop as drastically as $60,000, with liquidity dynamics potentially preventing a further decline below $65,000. He noted consistent spot absorption even on lower timeframes, indicating strong appetite for BTC.
Despite overhead resistance at $72,000 being quickly removed once Bitcoin started reversing, Credible Crypto speculated the possibility of a reversal from the current levels without hitting the range lows of $62-65k.
It is essential to note that this article does not offer investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions.