Bitcoin (BTC) experienced a significant drop below $60,000 on June 24, marking the first time in seven weeks that the cryptocurrency fell to this level. Analysts attributed this decline to “whale games,” referring to the manipulation of prices by large Bitcoin holders.
Data from Cointelegraph Markets Pro and TradingView revealed that BTC reached a local low of $59,809 on Bitstamp after Wall Street opened for trading. The weakness in Bitcoin’s price, which started after the weekly close, continued throughout the Asian and Wall Street trading sessions, resulting in a 5% loss for BTC/USD.
Material Indicators, a trading resource, noted that whales were shifting liquidity in order to influence price momentum. It highlighted the thin liquidity in the Bitcoin order book, suggesting that it wouldn’t take much to push the price up. An accompanying chart displayed liquidity clusters for the BTC/USDT pair on Binance, the largest global exchange.
Material Indicators also mentioned the upcoming release of United States macroeconomic data and highlighted that whales were engaging in “spoofing” tactics, similar to the previous week. CoinGlass, a monitoring resource, reported that BTC long positions suffered losses as a result of the drop below $60,000, with long liquidations totaling $136.5 million in a 24-hour period.
Scott Melker, a trader, analyst, and podcast host known as the “Wolf Of All Streets,” found cause for optimism in the situation. He pointed out that Bitcoin’s relative strength index (RSI) on daily timeframes reached a 10-month low, which could indicate a local price bottom. The RSI, which measures the strength and speed of price movements, was approaching oversold territory, with a reading of 26.7 at the time of writing.
Rekt Capital, a popular trader and analyst, compared the current pullback in Bitcoin’s price to previous retracements in the ongoing bull market. He calculated that the average retracement depth in previous market cycles was -22%, suggesting that the recent drop was relatively shallow in comparison.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any decisions.