As the crypto market faces a decline, the Bitcoin (BTC) price has also dipped by approximately 3.25% in the last 24 hours, reaching $3,690 on June 8. This price movement is driven by a few key factors, which we will explore in detail.
Better-than-Expected U.S. Job Data Impacts Bitcoin Prices
The primary catalyst behind Bitcoin’s lower prices today is the strong U.S. employment report for May. Nonfarm payrolls surged by 272,000, exceeding all 77 estimates in Bloomberg’s economist survey. This data led to a rise in Treasury yields, with both two-year and 10-year yields increasing by around 12 basis points.
As a result, stocks declined, with the benchmark S&P 500 Index down around 0.3%. Meanwhile, the dollar strengthened.
Rising yields often indicate higher borrowing costs and can lead to reduced risk appetite. Consequently, investors tend to move away from riskier assets like stocks and cryptocurrencies in favor of safer investments, contributing to the Bitcoin price decline.
Slight Depletion in BTC Supply Held by Largest Holders
Another factor contributing to Bitcoin’s price decline today is a slight dip in the BTC supply held by its richest holders. Notably, the Bitcoin supply held by “whales” with at least 100,000 BTC in holdings has decreased by 0.2% in the last 48 hours.
| Wallet Size | BTC Supply Change |
|---|---|
| 100,000+ BTC | -0.2% |
| 10,000-100,000 BTC | Accumulating |
| 1,000-10,000 BTC | Accumulating |
This suggests that these large investors are either redistributing their holdings into smaller addresses or cashing out altogether, which could be contributing to the downward pressure on Bitcoin’s price.
Technical Analysis: Bitcoin Struggles to Break Past $70,000
From a technical viewpoint, Bitcoin’s decline today has started after testing its interim resistance level at around $70,000. The cryptocurrency has been failing to close decisively above this level since mid-March.
Inverse Head-and-Shoulders Pattern Suggests Bullish Potential
However, this resistance level appears to be the neckline of Bitcoin’s prevailing inverse-head-and-shoulders (IH&S) pattern. This classic bullish reversal setup resolves when the price breaks above the neckline and rises by as much as the maximum distance between the pattern’s lowest point and the neckline.
If the IH&S pattern plays out as intended, Bitcoin’s primary upside target for July is over $90,000. Conversely, a pullback from the neckline risks sending the BTC price toward its 50-day exponential moving average (50-day EMA) at around $66,740.
In conclusion, the recent decline in Bitcoin’s price is primarily driven by better-than-expected U.S. job data and a slight depletion in the BTC supply held by its largest holders. However, the technical analysis suggests a bullish potential if Bitcoin can break above the $70,000 resistance level, which could propel the cryptocurrency toward a new all-time high.
