Bitcoin ‘well games’ come early as the price of BTC has fallen below $60k
Bitcoin (BTC) dropped below $60,000 for the first time in June 24. The analysis blamed “whale games” for the bottom line.
Bitcoin whale “spoofing” BTC costs a long time
Data from Cointelegraph Markets Pro and TradingView showed new local lows of $59,809 for BTC on Bitstamp hitting after Wall Street opened.
The weakness that started after the weekly close continued in Asian and Wall Street trading sessions to deliver BTC/USD losses of 5% on the day.
In response, trading inputs showed a normal pattern of rebounding in exchange order books. He warned that whales are changing liquidity to influence price movements.
“Ask liquidity in the near term is paper thin in Bitcoin's order book, so it doesn't take much for prices to increase,” he explained on X.
“It's been a challenge so far because the week I've been waiting for has started.
The accompanying chart showed liquidity concentrations for the BTC/USDT pair on Binance, the largest global exchange.
Material indicators cited upcoming US macroeconomic data releases, and added that “liquidity” courtesy of whales will also be seen – similar to last week.
Data from the tracking source CoinGlass showed pain levels for long BTC positions thanks to a trip below the $60,000 mark.
In the 24 hours to the time of writing, long liquidity has risen to $136.5 million, bringing the crypto to a total of $265 million.
BTC Price Recovery “Not Even Average”
Others have compared the current return to others since the start of the new Bitcoin bull market in early 2023.
Related: Can $60K BTC Price Hold Support? 5 things to know in Bitcoin this week
For trader, analyst and podcast host Scott Melker, known as the “Wolf Of All Streets”, a 10-month low in Bitcoin's Relative Strength Index (RSI) on daily time frames was the reason for the bullish optimism surrounding the price.
“RSI is finally touching oversold (not closed there),” he confirmed.
“This is the first time since August 2023. When Bitcoin recently hit $56,000, the RSI didn't even sell off.”
RSI watchers look for values below 30 for diving “oversold” assets and buying opportunities. The daily RSI measured 26.7 at the time of writing.
Prominent trader and analyst Rect Capital, on the other hand, admitted that this year and compared to the previous one, the current low is characteristic.
“For all records since the bottom of the 2022 bear market… the average retracement depth is -22%,” he calculated.
“The average retracement length is 42 days. This current retracement has -16% depth and a length of 35 days. This current retracement is not yet average in depth or length.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
