Bitcoin (BTC) experienced a significant drop below $60,000 on June 24, marking its lowest point in seven weeks. Analysts attributed this decline to “whale games,” where large investors manipulate the market for their own benefit.
The price of BTC reached a local low of $59,809 on Bitstamp after the Wall Street open, resulting in a 5% loss for BTC/USD. This weakness persisted throughout the Asian and Wall Street trading sessions. Material Indicators, a trading resource, highlighted that whales were manipulating liquidity to influence price momentum. It noted that the Bitcoin order book had limited liquidity, making it easy for the price to be pushed up.
The BTC/USDT order book on Binance also showed liquidity clusters, indicating that whales were engaging in liquidity “spoofing” similar to the previous week. Additionally, upcoming macroeconomic data releases in the United States were expected to contribute to the volatility.
Data from CoinGlass revealed the extent of the losses incurred by BTC long positions due to the drop below $60,000. Long liquidations in the past 24 hours amounted to over $136.5 million, with the total crypto liquidations reaching $265 million.
Despite the decline, some analysts found reasons for optimism. Scott Melker, a trader and analyst known as the “Wolf Of All Streets,” pointed out that Bitcoin’s relative strength index (RSI) on daily timeframes reached a 10-month low, suggesting a potential local price bottom. The RSI, which measures the strength and speed of price movements, was hovering around the oversold territory.
Another analyst, Rekt Capital, compared the current retracement to previous ones in the Bitcoin market. He noted that the recent drop was relatively shallow compared to previous retracements, indicating that the market may be resilient.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assess the risks involved before making any investment decisions.