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Bitcoin Fails to Reach $72,000: June 11, 2024 Analysis
While Bitcoin price faced bullish pressure that pushed its price towards the higher level, BTC failed to break its resistance at $72,000. Let’s analyze together the future prospects of the price of BTC.
Bitcoin (BTC) price situation.
While Bitcoin appeared poised to continue its upward trend, selling pressure as it reached $72,000 called this dynamic into question. In fact, for the fourth time, the cryptocurrency has rejected this price level, which seems to constitute significant resistance. Now, Bitcoin price appears to be forming a double top, a technical pattern that suggests a possible continuation of the bearish move. This naturally suggests a return to the lower part of the range formed by Bitcoin around $60,000.
As of this writing, Bitcoin is trading near $67,500. In the short term, we can see that the cryptocurrency has stabilized around $67,000. Therefore, holding BTC at this level can continue to give buyers hope. The medium to long-term structure of Bitcoin remains bullish, as demonstrated by the Dow Theory and the 50-day and 200-day moving averages. This reinforces the optimistic outlook. However, Bitcoin’s price momentum appears to continue to weaken, suggesting a continuation of the bearish move it has just embarked on.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a coach at Family businessa community of thousands of proprietary traders active since 2017. There you will find lives, educational content and mutual help on the financial markets in a professional and friendly atmosphere.
A Closer Look at Bitcoin Derivatives (BTCUSDT)
Open interest in Bitcoin perpetual contracts remains recovering even as its underlying asset is losing value. This demonstrates an increase in positions (long or short) as the cryptocurrency approaches the $67,000 support. Given the still positive financing rate, it can be deduced that purchasing interest continues to prevail. This reflects a price divergence between BTCUSDT contracts and their underlying asset, likely due to the resumption of bullish pressure. Finally, regarding liquidations, over $21 million in liquidations occurred during the $72,000 rejection, demonstrating forced capitulation by buyers.
The liquidation heat map for the last month indicates that BTC/USDT reacted negatively to reaching the liquidation zone identified around $72,000. This demonstrates the selling interest at this level. Currently, the most significant liquidation zone is between $65,000 and $66,000. If the market approaches this level, we could see a massive trigger of orders, potentially increasing the cryptocurrency’s volatility. This area represents important points of interest for investors.
Bitcoin (BTC) price hypothesis.
- As long as the price of Bitcoin manages to remain above $66,000, we can anticipate exceeding $72,000. The next resistance to consider, if the upward movement continues, would be Bitcoin’s ATH just below $74,000. Higher, we can highlight the first Fibonacci extensions level identified at $78,300. At this stage it would represent an increase of 16%.
- If Bitcoin price fails to stay above $66,000, we could expect support from buying interest at $65,000 or even $63,000. The next level to consider, if the downside movement continues, would be around $60,000. At this stage it would represent a drop close to -10%.
Conclusion
Although Bitcoin’s long-term trend remains bullish, recent rejections at critical resistance levels and the formation of a double top suggest a possible continuation of the bearish move. The recent stabilization gives buyers hope, but current momentum points to weakening. Therefore, it will be crucial to closely observe price reactions at several key levels to confirm or refute current hypotheses. It is also important to remain vigilant against potential “fake outs” and market squeezes in any scenario. Finally, let us remember that these analyzes are based exclusively on technical criteria and that the price of cryptocurrencies can evolve rapidly also depending on other more fundamental factors.
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Family business
Family Trading is a community of traders active since 2017 that offers Lives, educational content and contacts with the financial markets, not celuting cryptocurrencies with their friends Elie FT, passionate investor and trader on the cryptocurrency market.
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