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Bitcoin Price Falls 4% — Will It Go Below $60,000?

Last Updated June 24, 2024 3:15 PM
Nikola Lazic
Last Updated June 24, 2024 3:15 PM

Key Takeaways

  • Bitcoin fell near the critical $60,000 threshold.
  • Over $100 million in long positions liquidated.
  • Mt. Gox announced a repayment process starting in July 2024.

The price of Bitcoin fell from its daily opening of $63,324 to a daily low of $60,571, losing 4% of its value. The amount of the decrease isn’t as significant as the fact that it approaches its most important horizontal threshold of $60,000. 

Miner Reserves | Source: Cryptoquant

There has been a liquidation of over $100 million in long positions. Miners are under pressure due to high breakeven costs following a halving event, which has led to a significant drop in their Bitcoin reserves to the lowest in 14 years.

In addition, earlier today, it was announced that Mt. Gox scheduled a repayment process for Bitcoin and Bitcoin Cash for Investors in early July 2024. All of this made a bearish sentiment that could bring the price of Bitcoin below $60,000. 

Bitcoin See Long Liquidations 

Derivatives markets usually put additional pressure on the price, and liquidations in opposing directions further add to the momentum. That was the case today, as CoinGlass data shows that $102 million in long positions were liquidated in Bitcoin derivates. 

Liquidations data | Source: CoinGlass

This is the highest spike since May 1, when Bitcoin dipped below $57,000. The total number of liquidations is $306,155,873, making Bitcoin’s one-third. This turmoil could also hint at more decline as the day progresses. 

BTC Price Analysis 

After reaching a peak of nearly $74,000, Bitcoin entered a descending channel. On May 17, it broke out, climbing to $71,800 by May 21. Despite a fallback to $67,000 on May 31 and an attempt to regain momentum, it failed to surpass the $71,800 level again.

BTCUSD | Credit: Nikola Lazic/Tradingview

Following this second encounter with the $71,800 level on June 7, Bitcoin experienced a downturn. Moving forward, two possible scenarios emerge. Initially, the uptrend that started on May 1 could indicate an impending major rally, potentially setting a new all-time high.

If Bitcoin can bounce off the channel’s resistance and convert it into support, it may initiate the next bullish phase of a five-wave pattern, aiming to push past $78,000 upon completion of this wave.

On the other hand, if Bitcoin falls back into the descending channel, it could signal a bearish trend. The recent rise might then be interpreted as a mere corrective three-wave pattern from its all-time high, suggesting that Bitcoin is in a broad wave four correction, defined by WXY waves, with the recent lower high potentially marking the end of wave X. This scenario could lead to a decline towards $55,200.

The outcome largely depends on how Bitcoin interacts with the channel’s resistance at the crucial 0.786 Fibonacci level of $62,500.

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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