Bitcoin had difficulty re-exceeding the $60,000 level as the volatility in global markets continued on Friday. The daily closing was below this threshold for the first time since September 2024, causing the area that was previously viewed as support in the market to now stand out as resistance.
The 60 thousand dollar level has turned into a critical threshold again
According to TradingView data, BTC/USD parity continued to seek direction in the short term after the daily close below $60,000. Those who maintain their upward expectations in the market view the reversal of this level as an important technical condition for the price to return upwards.
Selling pressure continued in Asian stock markets. With concerns about technology stocks in particular, circuit breakers came into effect in the South Korean market and there was a new 8 percent decline in the indices. In contrast, there was no similar spread in US stocks; At the time the news was written, S&P 500 and Dow Jones remained positive.
It’s an interesting day for Bitcoin; The upcoming quarterly option expiration may also have an impact on short-term price movements.
Weakness in technology stocks remained on the agenda
The background of the fragility in the markets was the sharp depreciation in technology stocks. On the other hand, Micron Technologies’ financial results, which came above expectations, partially supported the risk appetite during the day. Still, the overall picture showed that the retreat in major technology companies continued.
Sharing market analysis, The Kobeissi Letter suggested that a broader recovery may be imminent. The organization stated that many major technology companies have fallen by more than 50 percent compared to their all-time highs, and in this table, the cryptocurrency exchange Coinbase stock stands out with a 69 percent drop. The Kobeissi Letter is a market research publication known for its macro market, stock and commodity focused analysis.
A significant portion of major technology companies are currently in bear market territory; Many stocks lost more than 50 percent compared to their peaks.
Inflation data can be decisive for risky assets
In its latest assessment, QCP Capital emphasized that the inflation trend in the USA may continue to be a determinant on risky assets in the coming period. According to the company, the immediate forecast for core PCE is 3.30 percent and for headline PCE is 3.82 percent. Both indicators remain above the US Federal Reserve’s target.
Mini dictionary: PCE is the personal consumption expenditures price index and is one of the prominent indicators in the US Federal Reserve’s inflation tracking. Core PCE measures the more fundamental price trend, excluding volatile items such as food and energy.
PCE data for May recorded the highest annual increase since mid-2023. This situation is considered as a development that may create additional pressure on both stocks and crypto assets through interest rate expectations.
Analysts are watching the 200-week average
Cryptocurrency analyst Michaël Van de Poppe states that it is closely monitored whether the downward trend in Bitcoin will continue in the short term. The analyst draws attention to the price movements on the side of Strategy, the company with the world’s largest Bitcoin reserve, and Stretch, the company’s Bitcoin financing tool. Strategy stands out as a US-based software company, formerly known as MicroStrategy, known for holding large amounts of Bitcoin on its balance sheet.
According to Van de Poppe, the significant pullback seen in Stretch and Bitcoin’s hesitation around $60,000 is not considered a weak signal. However, the analyst points out that a bullish mismatch has occurred on the daily chart and emphasizes that this view has not been confirmed yet. The main level that stands out technically in the market is the 200-week simple moving average at $ 62 thousand 243.
