Bitcoin’s price fell below $67,000 on June 11, just as Wall Street opened for the day, in what appeared to be a typical pre-inflation report decline in the markets.
The BTC/USD 4-hour chart showed a drop in Bitcoin’s price to $66,696 on Bitstamp, marking its lowest point this month. Despite a continuous decline over nearly 24 hours, Bitcoin failed to reverse the trend as investors braced for upcoming US macroeconomic data and Federal Reserve statements.
With a 3.6% decrease on the day, BTC/USD faced various downside targets, potentially reaching as low as $60,000. Traders like Roman and Castillo Trading expressed interest in buying at lower levels, with Roman planning to enter long positions if a reversal occurred and Castillo Trading looking at a buy zone around $64,000.
While some traders remained calm amidst the price fluctuations, others pointed out that Bitcoin had been consolidating below all-time highs for almost three months. Scott Melker, a well-known trader, analyst, and podcast host, described the recent price action as insignificant, noting that Bitcoin was still trading in the top half of its range despite the drop.
Concerns arose from the increasing open interest on derivatives markets, which hit new all-time highs in June, surpassing $37.6 billion. This surge in open interest typically signals potential volatility in Bitcoin’s price. Even as Bitcoin futures open interest decreased slightly with the price drop, it remained above $35 billion.
Filbfilb, co-founder of trading suite DecenTrader, warned of a high-risk situation due to the rising open interest and stagnant price. He presented a “worst case scenario” for BTC/USD, suggesting potential downside wicks to as low as $45,000.
It’s important to note that this article does not offer investment advice. All investment decisions involve risk, and readers are advised to conduct their own research before making any decisions.