Bitcoin, the world’s largest cryptocurrency, is starting the last week of June on a downward trend, approaching a retest of its lowest range near $60,000. The price of Bitcoin has dropped by 1.25% since the daily close on June 24, testing the patience of bulls as it faces strong resistance. The key question now is whether Bitcoin can hold its current levels as the monthly close approaches. The cryptocurrency has already fallen below several key moving averages, causing short-term holders to incur losses. This temporary setback in demand has put the focus on whales, who are closely watching the market at its lowest prices in over a month. This week, additional factors contributing to the volatility of Bitcoin include the release of US unemployment data on June 28, revised second-quarter gross domestic product (GDP) figures, and the Federal Reserve’s inflation gauge. With a 7% decline in June so far, Bitcoin faces a challenging task of rebounding before the monthly and quarterly close.
The current Bitcoin price landscape indicates a decline to six-week lows, reaching $62,128 on Bitstamp. This represents the lowest level since May 15, and with the weekly and quarterly close approaching, the cryptocurrency has seen a 7% decline for the month. Traders are cautious and expect further downside for Bitcoin, which could also impact altcoins with a potential 20% drop. Bitcoin’s multimonth trading range is being closely observed, with key levels being identified by traders. The cryptocurrency has broken through bid support above $62,000, resulting in the liquidation of around $48 million worth of long positions. The upcoming release of US jobless claims, revised Q2 GDP, and the Personal Consumption Expenditures (PCE) index will have a significant impact on the cryptocurrency market, as previous data has shown its sensitivity to unemployment figures. PCE is considered the Fed’s preferred measure of inflation, and any significant deviation from forecasts could affect policy decisions. The correlation between Bitcoin and US stocks has been interestingly inverse, with stocks outperforming while Bitcoin weakens. Short interest in S&P 500 and Nasdaq 100 ETFs is at a six-year low, indicating a strong market risk appetite. This stark contrast highlights Bitcoin’s weak performance despite the overall market conditions. The decline in Bitcoin has been attributed to the drop in Fed liquidity levels, which have decreased by $140 billion. However, there are predictions that liquidity levels have reached their lows, suggesting a potential rebound for cryptocurrencies. The whale population is being closely observed as Bitcoin approaches $60,000, with some considering this level to be an attractive trade. However, the market has experienced artificial volatility driven by order book “spoofing.” While some classes of whales have increased their Bitcoin exposure this quarter, the overall picture is not uniform. Recent data shows that whales have been buying the dip, but the selling volume does not justify the price drops, which are manipulated by market makers working for the whales. The sentiment in the crypto market is approaching its lowest levels of 2024, as indicated by the Crypto Fear and Greed Index. There has been an increase in fear and disinterest among Bitcoin market participants, with traders capitulating amidst the price range between $65,000 and $66,000. This negative sentiment is worsening and is attributed to overtrading and emotional decision-making. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.