BTC Eyes $60K Drop Amid Thinning Liquidity on 3% Dip

Bitcoin’s value dipped below $68,000 on June 11 during the Asian trading session. This decline comes amid warnings from analysts about potential further losses for Bitcoin’s price. Bitcoin’s lack of significant bid support is contributing to its price weakness. Data from Markets Pro and TradingView recorded a 3% decline, leaving Bitcoin at a low of $67,320 on Bitstamp after the daily close. The cryptocurrency could not maintain its position at the critical $69,000 level, with bulls unable to prevent the downward movement due to sparse liquidity in the exchange order books.

Keith Alan, co-founder of trading resource Material Indicators, had previously indicated that a lack of heavy bid support could spell trouble for Bitcoin’s price strength. In his latest YouTube update, he highlighted that although some laddered bid support exists, it is not heavily concentrated, even down to $60,000. This insight was accompanied by a chart displaying order book liquidity for the BTC/USDT pair on Binance, the world’s largest cryptocurrency exchange.

Material Indicators further noted in a subsequent post on X that Bitcoin’s recent decline confirmed the rejection of $69,000 as support and also broke through the 21-day moving average, an essential short-term trendline. The post 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 coming week’s major potential source of volatility for Bitcoin and the broader crypto market is the forthcoming United States macroeconomic data, which includes the Consumer Price Index (CPI) and Producer Price Index (PPI). The Federal Reserve’s latest interest rate decision and the subsequent press conference led by Chair Jerome Powell are also anticipated to be significant influences. As reported, the intersection of these events could lead to notable fluctuations in cryptocurrency prices. Popular trader Skew mentioned, “So far CPI/PPI has been around the highs of this range & FOMC resulting in local lows. Interesting few days ahead.”

Opinions on Bitcoin’s support levels are varied. Credible Crypto, another trader and market commentator, suggested that the downward move might not be as severe as reaching $60,000. He pointed out that the presence of liquidity being added and removed by large-volume traders might prevent the price from falling below $65,000. He summarized for his X followers that “We continue to see spot absorption on each and every move down, even on lower timeframes.”

Credible Crypto also observed that when Bitcoin began its reversal, resistance at $72,000 was quickly removed. He speculated, “What are the odds we front run range lows and 62-65k and just reverse from here? I think they are decent.” He emphasized that while there are no guarantees, the market’s price action over the next 24 hours would provide more clarity.

The current market analysis for Bitcoin shows a mixed sentiment regarding its future price movements. Analysts warn of potential further declines, yet some traders see room for a reversal. As the market braces for critical economic data and decisions, the outcomes could significantly influence Bitcoin’s direction in the immediate short term. The coming days were expected to be crucial in determining whether Bitcoin stabilizes or continues its downward trajectory.

Therefore, traders and investors are advised to remain vigilant and stay updated with the latest market trends and economic reports. The situation underscores the inherent volatility of the cryptocurrency market and the importance of informed trading decisions.