Bitcoin Fails to Reach $72,000: Analysis of June 11, 2024

While the price of Bitcoin experienced bullish pressure that pushed its price to its highest level, BTC failed to break its resistance at $72,000. Let’s analyze together the future prospects of BTC’s price.

Situation of Bitcoin (BTC) Price

While Bitcoin looked poised to continue its uptrend, selling pressure upon reaching $72,000 challenged this dynamic. Indeed, for the fourth time, the cryptocurrency has rejected this price level, which appears to constitute significant resistance. Now Bitcoin’s price appears to be forming a double top, a technical pattern that suggests a possible continuation of the bearish movement. This obviously indicates a return to the lower part of the range formed by Bitcoin around $60,000.

At the time of writing this text, Bitcoin is trading close to $67,500. In the short term, we can see that the cryptocurrency has stabilized around $67,000. So, maintaining BTC at this level may continue to give hope to buyers. The medium to long-term structure of Bitcoin remains bullish, as demonstrated by Dow theory and the 50 and 200-day moving averages. This reinforces the optimistic perspective. Nevertheless, Bitcoin’s price momentum appears to be continuing to weaken, suggesting a continuation of the bearish move that has just begun.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of own traders active since 2017. There you will find lives, educational content and mutual help around financial markets in a professional and friendly atmosphere.

A Closer Look at Bitcoin Derivatives (BTCUSDT)

The open interest in Bitcoin perpetual contracts remains resurgent even as its underlying asset loses value. This shows an increase in positions (long or short) as the cryptocurrency approaches the $67,000 support. Coupled with a still positive funding rate, it can be inferred that buying interest still dominates. This reflects a price difference between BTCUSDT contracts and their underlying asset, likely due to resurgent bullish pressure. Finally, on the liquidation side, more than $21 million worth of liquidations occurred during the rejection of $72,000, showing a forced capitulation of buyers.

The liquidation heatmap for the past month indicates that BTC / USDT reacted negatively upon reaching the liquidation zone identified around $72,000. This shows sales interest at this level. Currently, the key 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 volatility of the cryptocurrency. This zone represents important points of interest for investors.

Hypotheses for Bitcoin (BTC) Price

As long as Bitcoin’s price manages to stay above $66,000, we can expect to break $72,000. The next resistance to consider, if the upward movement continues, Bitcoin’s ATH would be just below $74,000. Higher, we can highlight the first level of Fibonacci extensions identified at $78,300. At this point, this would represent a 16% increase. If Bitcoin’s price does not stay above $66,000, we can provide support by buying interest at $65,000 or even $63,000. The next level to consider, if the downward movement continues, would be around $60,000. At this point, this would represent a decline of close to -10%.

Closure

Although the long-term trend of Bitcoin remains bullish, the recent rejections of critical resistance levels and the formation of a double top indicate a possible continuation of the bearish movement. The recent stabilization gives hope to buyers, but the current momentum indicates a weakening of them. Therefore, it will be crucial to carefully observe price reactions at different key levels to confirm or refute current hypotheses. It is also important to remain vigilant against potential “false outs” and market “squeezes” in any scenario. Finally, let’s remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also develop rapidly depending on other more fundamental factors.

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Family Trading is a community of own-account traders active since 2017 that offers lives, educational content and mutual assistance around the financial markets, including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.

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