Key Points
- Bitcoin [BTC] experienced losses of 7.84% on June 24th, potentially due to news developments around Mt. Gox repayments.
- Despite a strong demand zone around $59k, bearish pressure might lead to a further 10% BTC price drop.
Bitcoin [BTC] saw a notable decrease of 7.84% on June 24th. This may be a result of recent news surrounding repayments from the Mt. Gox bankruptcy.
A sudden drop in price was predicted earlier, and a few hours later BTC fell to $58.4k. It has since bounced back slightly, trading at $61.1k at the time of reporting.
Range Formation and Support Zone
On June 16th, Bitcoin bounced from $66k to $66.9k, retesting the range highs as resistance. Since then, it has trended downward, nearing the lows at $59.7k. It is expected that the $59k-$60k support zone could facilitate a BTC recovery.
The daily RSI supports this prediction. It dropped to 25.6 on Monday, but was 30.38 at press time. This suggests a potential recovery as the RSI rallies above 30.
However, the OBV trend indicates strong selling pressure over the past two weeks. This trend needs to be reversed before confidence can be regained.
Potential for Further Price Drops
Despite the $59k region being a strong demand zone, it may not be enough to counteract the bearish pressure. Analysis of liquidation data suggests that we could see a further 10% BTC price drop.
The 6-month lookback period chart shows a high concentration of long liquidations around the $55k mark. This could act as a magnetic zone, pulling prices towards it before the higher timeframe uptrend can resume.
While this may cause concern, traders and investors are advised not to sell immediately. A visit to the $55k region could present a buying opportunity rather than a cause for panic.
Please note that the information presented is not financial, investment, or trading advice and is solely the writer’s opinion.
