Bitcoin was trading below $68,000 during the Asia trading session on June 11, with analysts warning of potential further price losses for BTC.
The price weakness of BTC met a lack of strong bid support, leading to a 3% dip that brought Bitcoin to lows of $67,320 on Bitstamp after the daily close. Despite some laddered bid support, there was not a heavy concentration of bids, especially not down to $60,000, according to Keith Alan, co-founder of trading resource Material Indicators.
The lack of support at the key $69,000 level resulted in Bitcoin bulls being unable to prevent a downward move due to thin exchange order book liquidity. A chart covering order book liquidity for the BTC/USDT pair on Binance showed the situation clearly.
Following the latest move down, Bitcoin officially rejected $69,000 as support and also lost the 21-day moving average, which is a crucial short-term trendline, as noted by Material Indicators.
The potential volatility catalyst for Bitcoin and crypto price action for the week includes the United States macroeconomic data of the Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the Federal Reserve’s latest interest rate decision and Chair Jerome Powell’s press conference.
Despite mixed opinions on Bitcoin’s support levels, trader Credible Crypto suggested that the outcome of the downward move might not be as severe as a drop to $60,000. With liquidity being manipulated by large-volume traders, there could be enough appetite for BTC to prevent prices from dropping below $65,000.
Overall, the market remains uncertain, with traders closely monitoring price movements and support levels to make informed decisions. It is important for readers to conduct their own research and exercise caution when investing or trading in cryptocurrencies.