Bitcoin Risks Tumbling to $56,500 amid Miner Liquidation and Subsiding Spot ETF Demand
Bitcoin is under strong selling pressure, looking at the formation in the daily chart. The wave down could see BTC crash below $66,000
Bitcoin remains under intense selling pressure. The short-term trend has been set unless there is a breakout above the June 10 bar and the middle BB. Conservative bulls should revert to neutral as sellers look to double down, extending yesterday’s losses. Thus far, the emerging short-term trend is clear, but any sharp close pushing Bitcoin below $66,000 could signal to the market that the uptrend is over and buyers are exhausted.
Looking at the candlestick arrangement in the daily chart, it is evident that sellers are beginning to position themselves in readiness for a new wave of lower lows. Bitcoin is stable on the last day alone and down 5% in the previous week. At the same time, the average trading volume is up to over $29 billion. This recovery is notable, signaling that sellers are in position.
The following Bitcoin news events are worth tracking:
- There is a Bitcoin miner capitulation, one analyst notes. Post Halving, more “weak miners” have been winding down operations. As they do so, they are selling, fanning the current sell-off.
- As Bitcoin falls, inflows into spot ETFs is drying up. According to trackers, issuers redeemed roughly $65 million of BTC on the last day. As expected, most of these outflows are from GBTC.
Bitcoin Price Analysis
The path of least resistance, as the BTC/USD chart shows, is southwards.
The Bitcoin daily chart shows a wall at $70,000 and, most importantly, $72,000.
Aggressive traders can look to align with the bear breakout of June 11 by shorting on highs and targeting $66,000.
Conservative traders, on the other hand, can wait for a clean break below $66,000 and May 20 lows.
In the event, Bitcoin will likely collapse faster, retesting $60,000 and even May 2024 lows of around $56,500.
Any surge above $72,000 will cancel this preview, allowing buyers to push the coin to fresh all-time highs.
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