The cryptocurrency market has been closely watching the movements of Bitcoin (BTC) as it navigates the volatile landscape. Despite the anticipation of reaching new all-time highs, Bitcoin has faced a series of challenges that have kept its price below the desired level.
Bitcoin Faces Resistance Below All-Time Highs
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin’s price action has been characterized by trips toward resistance levels below its all-time high, with heavy downside wicks. On June 5, BTC/USD reached a low of $69,600 before a rebound occurred, highlighting the market’s struggle to break through the resistance.
Signals Indicate Potential Support Retest
According to the trading resource Material Indicators, market signals are now suggesting that it may be time to retest the local support level around $69,000. The company’s proprietary trading indicators have generated new trading signals, pointing to the possibility of a move back to this significant psychological level.
Whales and Short Sellers Blamed for Slow Progress
Michaël van de Poppe, the founder and CEO of trading firm MNTrading, noted that Bitcoin has yet to break out from its established range, despite the recent signs of strength. Meanwhile, trader Keith Alan, a co-founder of Material Indicators, attributed the slow progress toward new all-time highs to the influence of whales, or large-volume investors, who are deliberately holding the market back to protect their short positions.
Upcoming Macroeconomic Data to Impact Volatility
The upcoming U.S. unemployment data release is expected to have a noticeable impact on Bitcoin’s price volatility. Alan referenced this upcoming macroeconomic data, stating that a “cooler than expected Unemployment Report or a rug pull could send prices lower and punish late longs.”
Exchange Selling Pressure Observed
During the June 6 U.S. trading session, popular trader Skew noted considerable BTC sales from major exchanges Binance and Coinbase. On Coinbase alone, Skew observed the sale of 2,000 BTC, equivalent to over $100 million, raising questions about who was cashing out.
Despite the selling pressure, bulls managed to provide a lifeline in time for the daily close, preventing a continuation of the “weakness” that Skew had warned could have longer-lasting consequences for the BTC price trend.
Outlook: Breakout or Retest?
Looking ahead, the crypto community remains divided on the short-term trajectory of Bitcoin’s price. While some analysts see the potential for a breakout to new all-time highs, others anticipate a retest of the $69,000 support level before a renewed push for higher prices.
As the market continues to navigate these uncertain times, investors and traders will closely monitor the developments surrounding Bitcoin’s price movements, macroeconomic factors, and the actions of whales and short sellers.