As Bitcoin approached the annual bottom zone around $59,000 after its unsuccessful recovery attempt, downside risks came to the fore in the short-term outlook. The failure of the price to regain critical resistance levels led to discussion of the possibility of a new bottom in the market.
Liquidity focus gathered below $59 thousand
In the recent movement in the market, Bitcoin’s upward push weakened before it could reach the daily value gap between $67,500 and $70,500. Sellers regained weight around the 50-day and 100-day exponential moving averages, indicating that this area is operating as strong resistance.
The price falling below the ascending channel on the four-hour chart technically confirmed the downward structure breakout. In this view, around $60,700 is observed as the first internal support area, while below this, the annual bottom level at $59,000 stands out.
Liquidity data also supports this region. A cumulative leveraged long position of approximately $4 billion has been accumulated near $59,000. If the price falls to this area, it is possible that forced sales will be activated and long positions opened late will be liquidated. On the upside, the next big cluster of liquidity is around $68,000. There is a cumulative position concentration of over $4.75 billion here.
Crypto analyst Killa argued that Bitcoin could change direction by approaching this region before completely sweeping the liquidity pool below $60,000. According to the analyst, the market may tend to move contrary to the levels that large segments of people watch carefully.
The relative strength index is also approaching the oversold zone. It is considered that if the price falls to annual lows once again, the indicator may fall below the 30 level, which may pave the way for a sharp reaction following the liquidations.
Entries to the stock exchanges decreased
On the other hand, according to the data provided by CryptoQuant analyst Amr Taha, the amount sent by medium-sized Bitcoin investors to the exchanges decreased at the same time on June 19. Approximately 3,500 BTC entered Binance, approximately 3,000 BTC entered Coinbase, and approximately 1,700 BTC entered Coinbase Prime. These figures were recorded as the lowest levels seen since April 4.
CryptoQuant is known as an analysis platform that tracks on-chain data and exchange flows. Such data can provide short-term clues as to whether investors are preparing to sell.
Transfers to stock exchanges are often monitored as an indicator of potential selling intent. Lower inflows indicate that fewer coins are being moved to trading platforms for sale in the short term. This suggests that some of the near-term selling pressure may have eased.
Analysts remain cautious in the short term
However, flow data alone does not indicate that new demand is occurring. The data mostly reveals that mid-sized investors reduced their transfers to stock markets while Bitcoin was trading around $62,000. The pressure on the stock market appears to be easing somewhat as the price tests a large liquidity area near the annual bottom zone.
Some traders in the market argue that one should not be overly pessimistic in the short term. BTC trader LP warned that a bottom may occur towards the end of June.
