Bitcoin faces a pivotal moment after a sharp market-wide sell-off dragged prices to a key support level. As bearish momentum begins to slow and signs of buyer interest emerge, the coming days could reveal whether this zone becomes the foundation for a recovery or the gateway to a deeper correction.
Bitcoin is losing its previous monthly low as June begins
Lennaert Snyder analyzes Bitcoin’s prospects for June observed that BTC started the month by breaking below the previous month’s low, a development that has weakened the near-term technical picture. According to him, this early loss of support makes a move to the previous monthly high near $82,800 significantly less likely.
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The analyst explained that monthly clearout candles are relatively rare, reducing the likelihood of Bitcoin regaining higher levels in the market short term. Attention now shifts to a key support zone that could influence the direction of the market for the rest of the month.
Snyder also noted that the recent sell-off has left significant liquidity, creating an environment where prices could become increasingly volatile. As Bitcoin trades within this broader support range, expect periods of consolidation and choppy price action, along with occasional relief rallies.
Going forward, the analyst plans to closely monitor price behavior for potential intraday opportunities and liquidity-driven setups. He added that another sharp downward move could trigger an extra-long run liquidationscreating new trading opportunities.
BTC faces its biggest test yet: $60,000
Kamile Uray noted that Bitcoin experienced a sharp decline along with the broader financial markets, returning the cryptocurrency to the closely watched $60,000 level. The analyst emphasized that this area has long been considered a key support zone, and a stronger reaction from buyers here could trigger a corrective rebound after the recent sell-off.
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Uray also pointed out that the Relative Strength Index (RSI) remains in oversold territory on both a daily and 4-hour basis. Such conditions indicate that bearish momentum may be weakening, increasing the likelihood of a near-term recovery.
According to the analystthe formation of candles with long, lower wicks would be an encouraging sign that demand is developing at current levels. In the event of a recovery, the first resistance to watch is around $67,500, followed by the more important $74,000-$75,000 zone. However, Uray warned that the risk of further downturn will remain until Bitcoin can establish sustainable strength above $74,569.
Currently, the $60,000 level remains the main line of defense for the bulls. A decisive break below this support could expose Bitcoin to a deeper decline towards the $55,000-$50,000 region. On the plus side, if momentum continues to improve, this will be critical resistance The levels are at $74,569, $82,885, $98,000 and between $107,000 and $109,000, with the latter expected to be a major barrier to further gains.
Featured image from Getty Images, chart from Tradingview.com