Key Points
- Bitcoin’s price has fallen below $68,000 with analysts warning of potential further decline.
- The lack of strong buying pressure, or “bid liquidity,” exacerbates the situation.
Bitcoin’s price is experiencing a downward trend, dropping below $68,000 during the June 11th Asia trading session. Market analysts are predicting further losses, raising concerns about a potential drop to $60,000.
Bitcoin’s Downward Trend
The pessimistic outlook is a result of a 3.88% decline that pushed Bitcoin to lows around $66,800 in the last 24 hours. The key support level of $69,000 failed to hold, and thin order book liquidity worsened the downward move.
Market analysts are worried about the lack of strong buying pressure, also known as “bid liquidity.” Keith Alan, co-founder of Material Indicators, highlighted the weak buying pressure in a recent YouTube update.
Alan stated, “Sure we have some laddered bid support in here, but not a heavy, heavy concentration of it – and really, it’s not even heavy down to $60,000 if I can be completely honest.”
Technical Analysis and Market Predictions
Material Indicators’ further technical analysis suggests a bearish outlook. With the latest price drop, Bitcoin has decisively rejected both the $69,000 support level and the 21-day moving average, a crucial indicator of short-term trends.
The analysis stated, “Support at the 21-Day Moving Average and the R/S Flip at $69k have both been invalidated. This move isn’t over. In fact, I expect these killer whale games to continue up to and through JPow’s comments on Wednesday and economic reports on Thursday.”
This week, Bitcoin and the broader crypto market may experience volatility due to upcoming US economic data releases. Key events to watch include the Consumer Price Index (CPI), the Producer Price Index (PPI), the Federal Reserve’s interest rate decision, and Jerome Powell’s press conference.
Trader Skew shared his view on the correlation between these events. He noted that CPI and PPI have been at the higher end of their range, while the FOMC has led to local lows. Skew mentioned that the coming days would be interesting.
Potential Market Manipulation
While a drop to $60,000 is possible, some analysts remain cautiously optimistic. Credible Crypto, another prominent trader, suggests that large-volume traders’ actions may prevent a steeper decline. He points to the presence of “spot absorption” on dips, indicating buying interest even at lower price points.
He also noted the swift removal of sell orders (resistance) at $72,000 once the price started to reverse. This suggests that some whales might be strategically manipulating the market.
Credible Crypto believes there’s a decent chance we might hit range lows of $62K-65K and then reverse. While there’s no guarantee, we should know soon based on price action in the next 24 hours.
