YEREVAN (CoinChapter.com) — Bitcoin’s price recently dropped below $60,000, hitting $59,809 on June 24. Analysts and traders are examining this movement, with some pointing to market manipulation by large holders known as whales.
Whale Games Impact Bitcoin Price
These whales use tactics like “spoofing,” where they place large buy or sell orders without intending to execute them, creating a false sense of market liquidity.
Material Indicators observed this activity, stating,
“Near range ask liquidity is paper thin in the Bitcoin order book.”
This manipulation influences market conditions, making it easier to affect prices.
Bitcoin’s Double-Top Pattern Signals Potential Drop to $50,000, Says Analyst
Bitcoin’s repeated failure to break above higher resistance levels has led to the formation of a “double-top price pattern,” which could potentially cause a steeper decline to $50,000, according to a crypto analyst.
Markus Thielen, founder of 10x Research, identified a double-top price pattern in Bitcoin’s chart. This pattern, characterized by two similar peaks with a dip in between, suggests a possible further decline. If Bitcoin breaks below the support line, it could fall to $50,000 or even $45,000.
“Bitcoin could shift from its current range trading ($60,000-$70,000) into a topping formation, potentially leading to a steeper decline,”
Thielen explained. Range trading phases often feature several false breakouts, adding complexity to the market.
“This chart formation should be our base case unless it becomes invalidated. This formation could easily see a drop to $50,000—if not $45,000,”
said Thielen, adding,
“As we’ve observed over the past three months, range trading is a complex phase, often marked by several false breakouts.”
Bitcoin Price Drop Triggers $136.5 Million in Long Liquidations, Data Shows
Data from CoinGlass shows significant long liquidations due to the recent price drop. Over 24 hours, long liquidations totaled $136.5 million, with the overall crypto market seeing $265 million in liquidations. This indicates substantial losses for traders who bet on Bitcoin’s price increasing.
RSI Points to Potential Oversold Conditions
Scott Melker, known as the “Wolf Of All Streets,” noted that Bitcoin’s Relative Strength Index (RSI) on daily timeframes hit a 10-month low. An RSI below 30 typically indicates oversold conditions.
“RSI is finally touching oversold (has not closed there yet),”
Melker confirmed. This is the first time since August 2023 that the RSI has reached these levels.
Market Outlook Post-Halving Event
Crypto traders are speculating about Bitcoin’s price action after the halving event on April 20, which cut Bitcoin miner block rewards by 50%. Crypto trader Jelle noted that Bitcoin’s price action is similar to the 2016 halving cycle.
“More and more FUD is being offloaded at current prices,”
Jelle stated in a June 24 X post.
Rekt Capital believes the market is approximately 40% through the bull market phase. He noted that the drop below $60,000 provides an opportunity for buyers to purchase before Bitcoin enters a parabolic uptrend.
Bitcoin Likely to Stay in $55,000 – $75,000 Range, Says Novogratz
Michael Novogratz, founder of Galaxy Digital Holdings Ltd., expects Bitcoin to remain in a narrow trading range this quarter. He stated,
“We are in the consolidation phase in crypto. Bitcoin, Ethereum, and everything else, Solana will consolidate, what does that mean? It means probably somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events bring us higher.”
This follows a historic bull run driven by the launch of spot US Bitcoin exchange-traded funds and the halving event, which reduces the supply of new tokens. Bitcoin’s price fell 2.7% to $61,389 on Tuesday and has declined 16% since its March 14 peak of $73,797.
Novogratz noted that the crypto market benefitted from significant tailwinds in Q4 and Q1. He added,
“I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.”
Galaxy Digital’s first-quarter net income more than tripled to $421.7 million. Novogratz highlighted renewed interest in crypto, with increased lending activities.
“People are willing to lend us crypto for a long period of time unsecured, that didn’t happen six months ago and it’s happening now,”
he said.
“Counterparties are growing. Engagement around the space is just at a different level than what it was before.”
Shares of Galaxy Digital rose 1% to $9.28, up 23% this year.
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