On June 25, 2024, Bitcoin experienced a significant downturn as its price dropped below the critical $60,000 mark. This event marked a pivotal moment for the cryptocurrency market, triggering a wave of analysis and speculation regarding the factors influencing Bitcoin’s price movements and the potential implications for investors and traders.
Context and Recent Performance
Bitcoin encountered significant selling pressure on June 25, 2024, causing it to fall below the critical $60,000 support level. This decline followed a previous rejection near $72,000, leading to a gradual descent to $64,000 before the final drop to $60,000. However, a rebound from $58,500 briefly pushed Bitcoin’s price back above $60,000, suggesting potential support at this level amid volatile trading conditions.
Currently trading around $60,900, Bitcoin’s chart reflects a double top pattern, a potential signal of a bullish reversal. Despite this pattern, Bitcoin remains below its 50-day moving average, indicating continued uncertainty in its medium-term outlook. Conversely, maintaining support above the 200-day moving average provides some stability, although bearish divergences on oscillators highlight ongoing weaknesses in price momentum.
Technical analysis conducted with Elie FT, an experienced investor and trader at Family Trading, underscores these observations. Family Trading, a community established in 2017, offers educational resources and support for proprietary traders in navigating financial markets.
Looking ahead, Bitcoin’s ability to sustain above $58,500 will be critical for potential upward momentum, targeting resistance levels at $63,000 and $65,000 in a bullish scenario. Conversely, failure to hold support could see Bitcoin testing lower levels around $57,000 to $55,500, with significant downside risks extending to $54,500 and $52,000.
Focus on Derivatives Trading in BTCUSDT
The open interest in Bitcoin perpetual contracts has closely mirrored the price movement of the underlying asset, indicating significant speculative position exits as Bitcoin’s price declined. This trend suggests a capitulation among buyers, exemplified by recent liquidations. On Monday, June 24, more than $69 million in forced liquidations were recorded alongside a decrease in open interest. This development has strengthened selling convictions, leading to negative funding rates.
Recent data from the liquidation heatmap illustrates pivotal levels in BTC/USDT trading. The asset crossed a critical liquidation zone around $65,000, which was briefly defended but failed to sustain bullish momentum. The $60,000 threshold has recently attracted buying interest, indicating a sensitive area of market activity. Over the past three months, significant liquidation zones have been observed above current prices, particularly at $65,000 and $67,500. Conversely, support zones are noted at $56,850. Movements towards these levels could trigger substantial order volumes, potentially heightening cryptocurrency volatility. These zones are therefore crucial points of interest for investors, signaling potential market movements and investor sentiment shifts
Bitcoin Price Scenarios
If Bitcoin manages to maintain support above $58,500, there is an expectation for a resurgence towards levels above $63,000. Continued bullish momentum could encounter resistance around the $65,000 mark, with further potential gains towards $67,000, representing an approximate 10% increase. However, if Bitcoin fails to sustain above $58,500, there could be support from buyers in the range of $57,000 to $55,500. In a bearish scenario, the next critical support level to watch would be around $54,500, followed by a potential decline towards $52,000, indicating a near 14% decrease from current levels. These price levels are pivotal in assessing Bitcoin’s short-term price action and potential market sentiment shifts.
