Bitcoin Price Falls Below $60,000 Mark: June 25, 2024 Analysis
Bitcoin recently experienced a significant drop below the $60,000 mark after facing bearish pressure following a rejection at $72,000. The cryptocurrency’s price gradually declined to around $64,000 before plummeting to the $60,000 support level as analyzed on June 18. However, the price rebounded above $60,000 after hitting $58,500, sparking hope for a potential upward trend.
Presently, Bitcoin is trading at approximately $60,900 and is forming a double top pattern, indicating a possible bullish reversal. Despite being below its 50-day moving average, Bitcoin remains above the 200-day moving average. The overall price dynamics suggest a weakening trend, with bearish indicators like price action and oscillators showing a bearish divergence, raising concerns about the cryptocurrency’s future performance.
Analyzing Bitcoin derivatives, the open interest of Bitcoin perpetual contracts mirrored the price movement, indicating a position exit by speculators amidst price declines. Notably, over $69 million in forced liquidations from buyers were recorded on June 24, contributing to negative funding rates and reinforcing selling convictions in the market.
The liquidation heatmap reveals critical levels for Bitcoin, with the $65,000 zone witnessing significant liquidations and the $60,000 level sparking buying interest. Major liquidation zones in the past three months, such as $65,000 and $67,500, remain above the current price, suggesting potential triggers for increased volatility.
Looking ahead, two scenarios for Bitcoin’s price are outlined: if it stays above $58,500, a return above $63,000 and potential resistance at $65,000 and $67,000 could be expected. Conversely, falling below $58,500 could lead to support around $57,000 and $55,500, with further declines towards $54,500 and $52,000.
In conclusion, Bitcoin’s recent price fluctuations have created uncertainty, emphasizing the importance of monitoring key price levels to confirm or refute current hypotheses. Traders should remain cautious of market fluctuations and be prepared for potential shifts in either direction. It is essential to consider technical analysis alongside fundamental factors when evaluating cryptocurrency prices.
