Bitcoin is in red when writing and cratering when looking at the performance in the daily chart. Overall, the path of least resistance is well-defined and southwards. As long as bear bars are banding along the lower BB, sellers will remain in control. A break below the psychological reaction line at $60,000 on the back of expanding trading volume could see BTC sell off some more, opening up the possibility of a retest to $50,000 or worse.
At press time, Bitcoin is struggling. The coin is down 3% on the last day and 8% in the previous trading week. Of note, the average trading volume exceeds $42 billion, a spike from yesterday’s mean. This surge in participation means sellers are doubling down, and holders or long traders are exiting their positions, fueling the dump.
Traders are closely monitoring the following Bitcoin news today:
- After roughly ten years, Mt. Gox victims will receive their compensation in July, not October as earlier scheduled. The decision to accelerate this distribution comes when BTC is under immense selling pressure. The Mt. Gox trustee will distribute over $9 billion worth of BTC to victims.
- Despite the liquidation seen in BTC, it is emerging that whales are actually buying the dip, increasing their position based on Bitfinex data. It remains to be seen whether their bet will pay off in the short to medium term.
Bitcoin Price Analysis
Technically, BTC/USD is under pressure at spot rates.
Still, while bears are in control, pushing prices lower and offering bears an opportunity to add their shorts, the reaction today will shape the short-term trend.
The June 24 bar could be climactic if sellers fail to confirm yesterday’s losses by the end of the day.
However, if prices drop, BTC may likely crash, even breaking $60,000 as bears target $56,500.