Bitcoin Poised to Revisit $69K Despite Short Squeeze

Bitcoin Battles Resistance, Potential Retest on the Horizon

The price of Bitcoin hovered stubbornly around $71,000 on June 7th, with analysts predicting a possible dip towards previous support levels.

Data from Cointelegraph Markets Pro and TradingView revealed Bitcoin attempting to recover after touching intraday lows of $70,120 on Bitstamp before the daily close. This behavior mirrored the pattern observed throughout the week, with prices encountering resistance below their all-time highs and experiencing sharp downward movements. Another such instance occurred on June 5th, where BTC/USD briefly dipped to $69,600 before regaining momentum.

Trading resource Material Indicators observed these trends and suggested a potential retest of the crucial support level around $69,000. In a post on X, they noted that proprietary trading indicators were generating new signals pointing towards this possibility. They cautioned that a move back above $71,600 could invalidate this prediction, with a potentially strong economic report in the morning acting as a catalyst for such a move.

Material Indicators co-founder Keith Alan expressed a willingness to see the $69,000 psychological barrier tested, potentially leading to a bullish reversal of resistance and support. He acknowledged the strong technical support provided by the 21-Day Moving Average hovering around $68,800. However, he warned that an unexpectedly low unemployment report or a sudden market manipulation event (rug pull) could trigger a price decline, jeopardizing recent gains. Alan’s reference highlights the influence of upcoming U.S. economic data, particularly unemployment figures, which are known to impact Bitcoin price volatility.

Heavy Exchange Sell-Off Meets Bullish Counter

During the June 6th U.S. trading session, popular trader Skew observed significant Bitcoin sales originating from major exchanges like Binance and Coinbase. Notably, Skew reported that Coinbase alone witnessed the sale of 2,000 BTC, prompting the question of who might be cashing out over $100 million worth of cryptocurrency.

Despite these sell-offs, bulls managed to intervene before the daily close, avoiding a continuation of the “weakness” that Skew warned could have longer-term ramifications for the Bitcoin price trend.

Bitcoin Poised for Breakout?

Taking a broader perspective, Michaël van de Poppe, founder and CEO of MNTrading, pointed out that Bitcoin hadn’t yet broken free from its established trading range, despite recent signs of strength. On X, he summarized his thoughts, stating, “Bitcoin is still stuck within the range, but very heavily ready for a breakout upwards to a new all-time high. Slowly, but surely, the altcoins are rolling along. It’s a good time.”

However, Alan attributed the sluggish progress towards new highs to the actions of whales, large-volume investors who he believes are strategically suppressing prices to protect their short positions. In a recent X response, Alan described “a heap of shorts” concentrated between $71,500 and $75,000, suggesting that these whales are actively preventing prices from rising to avoid potential liquidation of their short bets. Data from CoinGlass supported this notion, indicating $71,900 as a key area of concentrated liquidity just above the spot price at the time of writing.

Bitcoin’s price action on June 7th showcased a tug-of-war between bulls and bears. While bulls managed to defend the daily close, analysts anticipate a potential retest of lower support levels in the near future. Whales, with their significant short positions, might be influencing this price movement. The upcoming U.S. economic data, particularly the unemployment report, could also play a role in Bitcoin’s price trajectory. Overall, the market remains cautiously optimistic, with some analysts anticipating an eventual breakout towards a new all-time high.