Bitcoin (BTC) fell below $60,000 on June 24 for the first time in seven weeks. Analysis results showed that the cause of the decline was the ‘whale game’.
Bitcoin whale “spoofing” costs BTC big time
The new BTC price on Bitstamp hit a local low of $59,809 after Wall Street opened, according to data from Cointelegraph Markets Pro and TradingView.
The weakness that began after the weekly close continued through the Asian and Wall Street trading sessions, with BTC/USD suffering a 5% loss for the day.
Responsive trading resource Material Indicators has revealed a classic scenario that plays out repeatedly throughout the exchange order book. Whales have been warning that they are moving liquidity to influence price momentum.
“Short sell liquidity is paper-thin on the Bitcoin order book, so it won’t take much to push the price higher from here,” noted X.
“That has been a challenge so far because the whale game we were expecting later this week has already started.”
The attached chart shows liquidity clusters for the BTC/USDT pair on Binance, the largest global exchange.
Material Indicators noted the upcoming release of US macroeconomic data and added that similar to last week, liquidity “spoofing” by whales was also visible.
Data from monitoring resource CoinGlass shows the extent of the pain suffered by long BTC positions due to the move below $60,000.
As of this writing, long-term liquidations in the 24-hour period have exceeded $136.5 million, bringing the cryptocurrency total to $265 million.
BTC price retracement “is not even average”
Others compared the current downturn to other downturns since the latest Bitcoin bull market began in early 2023.
Related: Can $60K BTC Price Support Hold? 5 things you need to know about Bitcoin this week
For trader, analyst and podcaster Scott Melker, known as “The Wolf of Every Street,” the daily hourly Bitcoin relative strength index (RSI) hit a 10-month low, sparking optimism about a local price bottom. Yes.
“RSI has finally reached oversold (not yet closed),” he confirmed.
“This is the first time since August 2023. When Bitcoin recently hit $56,000, RSI wasn’t even oversold.”
RSI watchers tend to look for values below 30 for possible dip-buying opportunities while the asset in question is “oversold.” At the time of writing, the daily RSI is measured at 26.7.
Popular trader and analyst Rekt Capital acknowledged that recent declines have been relatively shallow compared to this year and last year.
“For all traces back to the bottom of the 2022 bear market… the mean reversion depth is -22%,” he calculated.
“The mean reversion period is 42 days. The current decline is -16% and the duration is 35 days. “The current regression is not even average in depth or length yet.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.