Bitcoin lost approximately 20% of its value in June, falling below $60,000. Thus, the largest cryptocurrency recorded its weakest monthly performance since June 2022. The price was traded around $58,600 at the time of writing.
Remarkable appearance in monthly candle
The extent of the pressure on the market was not limited to the monthly decline rate. The monthly candle for June formed a large red body with almost no shadow. This outlook indicated that sellers remained significantly ahead throughout the month.
Monthly candlestick charts collect the opening, closing, highest and lowest prices in a single structure in a certain period. The candle body shows the difference between the open and the close, while the upper and lower shadows reveal how much the price moved in either direction during the period.
The candle structure in June showed that the price moved downward almost continuously from the opening at the beginning of the month to the close at the end of the month; There was no significant recovery or upward reaction.
What does the shadowless structure say?
Under normal circumstances, even in months of sharp decline, short-term reaction purchases or fluctuations leave a mark on the chart. The fact that these traces remained extremely limited in the June data made the continuity of the sales pressure more visible. The fact that the price on the last day of the month coincided with the lowest level of the same month also strengthened this picture.
In technical analysis, this type of candle structure is called Marubozu. This concept, which comes from Japanese candlestick chart terminology, refers to candles that have no or very limited shadows.
Mini dictionary: Marubozu is a candle formation that shows a one-way, strong price movement between the opening and closing. The fact that the upper and lower shadows are almost non-existent indicates that the counter-reaction was weak in the relevant period.
Range followed by analysts
The appearance of this pattern on the monthly chart indicates a significant weakness in market sentiment. Some analysts who have made evaluations recently also argue that the withdrawal may deepen and the possible bottom zone may occur between $ 48,000 and $ 55,000.
Such a one-sided selling period on a monthly scale is rare. Therefore, the technical outlook is considered a stronger warning than the 20% loss in June alone. For investors who maintain their bullish expectations, a more challenging situation stands out in the short term.
