Bitcoin Crashing: Short Sellers Victorious As BTC Bears Target $66,000

Bitcoin is down when writing. As bears take over, it appears traders are rushing to the exit. Even so, the path of least resistance, at least from a top-down preview, is northwards. However, what’s needed is a total reversal of June 6 losses, which will see Bitcoin align with May 20 gains.

Bears are in control at spot rates, aligning the trend with June 6. The slip below local support earlier today means Bitcoin is in red. It dropped by 3% on the last day but is mostly stable in the past week. At the same time, there is an uptick in the average trading volume, now approaching the $30 billion level. Technically, as long as prices are above $66,000, there is hope for bulls, which is a net positive for sentiment.

Bitcoin daily chart for June 11

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The following Bitcoin news events would likely shape price action in the coming sessions:

  • One analyst notes that roughly $12 billion worth of BTC shorts are stacked between $70,000 and all-time highs. If prices extend gains from around spot rates, the resulting short squeeze could easily boost BTC to over $80,000. For now, bears have the upper hand, and short sellers are in the money.
  • Arthur Hayes, the co-founder of BitMEX, is bullish on Bitcoin. Citing the shift in monetary policy among G7 banks, Hayes said BTC will likely benefit, rising even faster from current levels.

Bitcoin Price Analysis

BTC/USD is deep in red when writing following the breakout below local support.

Even so, eyes are on the $66,000 support level, marking the May 20 lows.

Since the top-down preview is bullish, buyers may take over only once there is a breakout above $72,000.

However, following the confirmation of the June 6 bar, every high should be an opportunity for aggressive traders to stack, targeting $66,000.

Further losses could see Bitcoin drop to as low as $60,000.

 

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ABOUT THE AUTHOR See More
Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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