Key Points
- Bitcoin briefly fell below $60,000 on June 24, but quickly recovered to over $62,000.
- The cryptocurrency’s next targets could be $64,600 or $58,150, depending on market pressure.
Bitcoin [BTC], the cryptocurrency with the largest market capitalization, experienced a brief dip below $60,000 on June 24.
This was the first time the digital currency reached such a level since May 3.
Bitcoin’s Recovery
Despite the drop, Bitcoin quickly bounced back. At one point, it was discovered that Bitcoin reached $62,814, with the broader market expecting higher prices.
However, the value later changed hands at $61,107.
Prior to this price drop, traders in the derivatives market had anticipated the move.
Bitcoin’s dip was largely due to heavy sell-offs from the German Government on June 19.
Negative sentiment was further fueled by the confirmation that Mt.Gox, the erstwhile crypto exchange, would begin distributing $8.6 billion worth of BTC to its creditors by July.
Market Response
This development sent shockwaves through the market, with many suggesting weaker conditions for Bitcoin.
However, increased calls for a market “bottom” across social media was one of the reasons Bitcoin bounced back.
Historically, when social volume and dominance of bottom calls spike, it leads to a significant rebound.
Despite this, the question remains: will Bitcoin jump again?
To predict this, Bitcoin’s Liquidation Heatmap was examined. This indicator predicts prices where severe liquidations might occur.
Future Volatility
High areas of liquidity suggest that prices could move in that direction. At the time of writing, high liquidity was observed at $64,600.
Therefore, if spot buying pressure increases, Bitcoin could hit this level.
Conversely, another cluster of liquidity existed at $58,150, indicating that if selling pressure increases, Bitcoin could fall below $60,000 again.
In the last 24 hours, BTC contracts liquidated reached $152.71 million. Liquidation occurs when a trader can no longer fulfill the margin requirements to keep a position open.
For Bitcoin, the high volatility in the market caused a cascade of liquidations.
Notably, long positions were the top casualty with $121.65 million wiped out in 24 hours, while shorts accounted for $31.06 million.
Traders might need to proceed with caution as Bitcoin’s direction in the short term remains uncertain.
