Recent data from Bitcoin futures markets indicate that bearish investors are preparing to target the $60,000 level as Bitcoin struggles to maintain higher price thresholds. Following a rejection at the $70,000 mark, analysts warn that Bitcoin's price could soon dip to $60,000, especially given the substantial liquidity gap below its current level.
On Wednesday, Bitcoin's value fell to $65,800, slipping below key intraday trend lines and raising concerns that the recent dip to $60,000 might not have been the lowest point. Analysts point to the increasing likelihood of a further decline towards the yearly low of $59,800, exacerbated by a widening liquidity gap between $66,000 and $60,000.
Key observations include Bitcoin's formation of lower highs as it faces repeated rejections near the $70,000 to $72,000 resistance range. The relative strength index (RSI) is approaching oversold territory, with Bitcoin trading beneath critical moving averages. A liquidation heatmap reveals a lack of liquidity up to $60,500, increasing the risk of a further price drop.
In the short term, Bitcoin's repeated failures to hold above $70,000 have weakened its outlook. The cryptocurrency's one-hour chart shows multiple unsuccessful attempts to sustain this level, each resulting in lower price highs and continued selling pressure. During the New York session on Wednesday, Bitcoin briefly reached intraday highs of $69,800 before sharply reversing, forming a typical swing failure pattern that accelerated downside momentum.
The cryptocurrency also traded below the 50-period and 100-period exponential moving averages, confirming the bears' control in the short term. With the RSI below 50, buying pressure remains limited. A crucial order block is identified near the $60,800 to $61,000 range, where significant buying interest previously emerged when Bitcoin hit its yearly low at $59,800. This area could become a target if Bitcoin fails to sustain above $64,000.
Bitcoin's liquidity heatmaps highlight orders stacked above $72,000 but also reveal a notable liquidity void from $66,000 to $60,500. This gap acts as a magnet, potentially drawing the price swiftly through low-liquidity areas towards stop clusters below. Despite more visible liquidity at higher levels, the downside risk remains substantial as leveraged longs worth over $350 million are still positioned around $60,500.
According to Bitcoin trader Husky, the cryptocurrency is slipping below the anchored volume-weighted average price (VWAP) drawn from last week's lows at $59,800, a level serving as a temporary fair value. The weakening market structure and a failure to recover swiftly above $68,000 increase the risk of further declines toward support levels near $65,000. For now, Bitcoin is expected to oscillate within a broad $60,000 to $72,000 range.
Market analyst EliZ also notes that Bitcoin is consolidating near $66,500 within a descending channel. A break below this point could drive the price towards the $63,400 to $64,600 support zone, heightening the possibility of revisiting the $60,000 level.