Will the $60,000 BTC Price Support Hold? 5 Key Bitcoin Insights This Week
Bitcoin sentiment is plummeting due to BTC price weakness, bringing back six-week lows.
Bitcoin is commencing the final week of June amidst a downward trajectory, approaching a retest of lower trading ranges as its price hovers near the $60,000 mark.
Having declined an additional 1.25% since closing on June 24, Bitcoin (BTC) is challenging the resilience of bullish sentiment by probing deeper into critical support levels.
The pivotal question now revolves around whether this support will hold as the month draws to a close.
Bitcoin has already breached several moving averages, placing short-term holders in negative territory as it dips below their aggregate cost basis.
Consequently, demand is experiencing a temporary setback, with particular scrutiny on whale activity amid the lowest price levels witnessed in over a month.
This week, the market faces heightened volatility due to upcoming events such as the release of traditional economic indicators including U.S. unemployment data on June 28, revised second-quarter gross domestic product (GDP) figures, and the Federal Reserve’s preferred inflation gauge the following day.
For Bitcoin to stage a recovery before the monthly and quarterly closures, it needs to reverse its current trend, having already incurred a 7% decline in June.
Cointelegraph analyzes the current landscape of BTC pricing and delves into the predominant concerns among traders, marking this as a pivotal week for market dynamics.
BTC price plunges to new six-week lows
Bitcoin’s recent performance has disappointed, culminating in a weekly close at $62,128 on Bitstamp, confirming its lowest levels since May 15. With the imminent weekly and quarterly closures, bulls face the challenge of reconciling with losses of 7% month-to-date.
Renowned trader Crypto Ed expressed a cautious sentiment in his recent assessment, highlighting potential further declines and projecting a possible 20% downturn for altcoins in tandem with BTC’s market rout. Meanwhile, trader Daan Crypto Trades outlined critical levels within Bitcoin’s multi-month trading range, emphasizing the importance of key Fibonacci retracement levels.
Recent data from CoinGlass underscored BTC/USD’s breach of bid support above $62,000, resulting in approximately $48 million of BTC longs liquidated over the past 24 hours.
Economic data spotlight with PCE week
The latter part of the week will reintroduce a whirlwind of macroeconomic data, including U.S. jobless claims, revised Q2 GDP figures, and the May print of the Personal Consumption Expenditures (PCE) index.
Crypto markets have shown a heightened sensitivity to economic indicators in 2024, particularly the PCE index, which serves as a crucial metric for the Federal Reserve in assessing inflation trends. Any significant deviation from forecasts could potentially influence policy decisions, impacting various asset classes including cryptocurrencies.
Matthew Dixon, founder and CEO of Evai, anticipates a notable market response to the PCE index, expecting implications for BTC, crypto assets, and broader risk assets.
According to CME Group’s FedWatch Tool, market expectations suggest potential interest rate cuts by the Fed in September, marking a critical juncture for crypto and risk asset markets.
Stock market resilience versus crypto weakness
In a notable divergence, Bitcoin and crypto markets are grappling with weakness amid a period where U.S. stocks have surged to record highs. The S&P 500 recently achieved new all-time peaks, highlighting an inverse correlation that has surprised many market participants.
Market commentator Kobeissi pointed out the declining short interest in major U.S. stock indices, contrasting sharply with the subdued volatility in equity markets despite unprecedented interest rate hikes.
Tomas, another market analyst, attributed Bitcoin’s sensitivity to fluctuations in Fed liquidity levels, which dropped significantly in recent weeks. He suggested that while liquidity indicators are currently low, a potential rebound could lift crypto markets in the near term.
Bitcoin whales and market sentiment scrutiny
As Bitcoin approaches the $60,000 mark, attention is turning to whether current price levels attract significant buying interest among whales. Recent market dynamics have seen instances of order book manipulation driving prices towards liquidity zones, creating artificial volatility.
Data indicates mixed trends among different categories of whales, with some showing increased exposure to BTC this quarter while others remain cautious.
The sentiment within the crypto market is notably pessimistic, as reflected by the Crypto Fear and Greed Index, which plummeted to 51/100 as of June 24, nearing its lowest levels in 2024. Market participants have shifted from “extreme greed” observed just a week prior to a more cautious stance amid ongoing price consolidation.
Long-time traders and analysts alike are observing these developments closely, with sentiments ranging from cautious optimism about potential market rebounds to concerns over prolonged bearish trends driven by emotional trading behavior.
In summary, Bitcoin faces a critical juncture as it navigates near $60,000, grappling with technical support levels amidst macroeconomic uncertainties and fluctuating market sentiments.
