Bitcoin (BTC) has experienced a significant decline in price over the last four days, dropping by more than 8% after reaching a high of $72,000 at the end of last week. Data from Cointelegraph Markets Pro and Coinbase shows that the BTC price fell from a peak of $69,547 on June 11, sliding 4.5% to hit an intraday low of $66,680.
The drop in Bitcoin’s price comes amidst a broader drawdown in the crypto market and growing inflation fears in the U.S. Additionally, outflows from U.S. Bitcoin exchange-traded funds (ETFs) on June 10 have added to the downward pressure on BTC price.
Analysts are now setting sub-$65,000 targets for Bitcoin’s price, with some predicting a descent into the $60,000 to $65,000 range. Founder of MN Capital, Michael van de Poppe, expects the price to dip into the higher end of this range, citing the upcoming Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) data as potential triggers for the correction.
Van de Poppe noted that similar price action occurred ahead of previous FOMC meetings and CPI readings, with a lack of bid liquidity below the spot price keeping the possibility of a return to lower support levels in play. Trading resource Material Indicators also warned of weak bid support, highlighting a lack of heavy concentration down to $60,000.
From a technical perspective, Bitcoin’s price is currently sitting on immediate support at $65,000. Losing this support could lead to a drop towards the 200-day Exponential Moving Average (EMA) at $63,934. The 50-day EMA, which sits within Bitcoin’s key support zone between $62,800 and $64,815, has historically preceded price surges in the past.
Despite the recent price decline, some analysts believe that the $60,000 support level could provide strong support for Bitcoin in the short term. However, the overall sentiment remains cautious as market participants wait for further developments in the U.S. economy and monetary policy.
The views expressed in this article are those of the author and do not necessarily reflect the opinions of Cointelegraph. The ongoing volatility in the cryptocurrency market underscores the need for investors to closely monitor market trends and developments to make informed decisions.