Bitcoin is starting off the final week of June on a downward trend, inching closer to retesting its low range as the price hovers around $60,000. With a 1.25% drop since the daily close on June 24, Bitcoin, also known as BTC, is challenging the confidence of bulls as it moves deeper into core resistance levels.
The critical question now is whether Bitcoin will hold at these levels as the month draws to a close. The cryptocurrency has already crossed several moving averages, causing short-term holders to fall into the red as it moves below their average cost basis. This has led to a temporary setback in demand, with a focus on whales as prices hit their lowest point in over a month.
This week, various factors are contributing to the volatility in the market, including the release of classic United States unemployment data on June 28, revised second-quarter gross domestic product figures, and the Federal Reserve’s preferred inflation gauge the following day. Bitcoin faces a challenging road ahead as it aims for a rebound before the monthly and quarterly close, with a 7% decline in June so far.
As the crypto landscape evolves, traders are closely monitoring the current BTC price situation and grappling with the key issues that are shaping this significant week in the market. Bitcoin has recently hit a six-week low, dropping to $62,128 on Bitstamp, marking its lowest levels since May 15. With the weekly and quarterly close approaching, bulls are facing a 7% loss for the month.
Popular trader Crypto Ed expressed concerns about Bitcoin’s weakness and predicted further downside, potentially impacting altcoins with a 20% decline. Another trader, Daan Crypto Trades, highlighted key levels within Bitcoin’s trading range, cautioning that it has reached a critical point for bulls to establish a higher low.
Market data indicates that BTC/USD has breached bid support levels above $62,000, resulting in approximately $48 million worth of long BTC positions being liquidated in the past 24 hours. As the week progresses, traders are awaiting crucial macroeconomic data releases, including U.S. jobless claims, revised Q2 GDP, and the Personal Consumption Expenditures index, which could significantly impact market sentiment and policy decisions.
The current market environment shows a curious contrast between Bitcoin and U.S. stocks, with the S&P 500 reaching all-time highs while Bitcoin struggles. Traders are closely monitoring the Federal Reserve’s liquidity levels, which have a direct impact on Bitcoin’s performance. Despite the challenging conditions, some traders anticipate a rebound in crypto performance once liquidity levels stabilize.
As Bitcoin approaches the $60,000 mark, attention is turning to whale activity in the market. Recent weeks have seen order book manipulation driving prices, leading to artificial volatility. While some whales are increasing their BTC exposure, the overall sentiment is mixed. Traders are closely watching whale accumulation at $62,000, with indications that record numbers of whales are buying the dip.
Overall, market sentiment remains cautious, with the Crypto Fear and Greed Index nearing its lowest levels of 2024. Traders are grappling with fear and uncertainty as Bitcoin’s price fluctuates, with sentiment shifting from extreme greed to fear territory. Despite the challenging conditions, traders are hopeful for a potential rebound in the market as they navigate the choppy waters of the crypto landscape.