Bitcoin dropped below $60,000 on Wednesday for the first time since June 10, hitting a two-week low as trading volume climbed and bearish positioning intensified before prices steadied.
Bitcoin tests key support near $60,000
Market data showed rising short positions and higher funding rates, pointing to growing downside momentum during the sell-off. The move pushed Bitcoin toward the lower boundary of a trading range that has largely held through June.
Analysts said this level remains critical. A sustained break below $60,000 could expose the market to a deeper decline toward $50,000, while holding support may reinforce the current consolidation phase.
Range-bound structure hints at possible rebound
Analyst Killa described current conditions as “range bound,” noting that the recent drop could be followed by a short-term recovery if selling pressure eases. Chart models suggested a bounce toward the $68,000 to $70,000 area, followed by continued sideways trading.
Another trader, RektProof, also highlighted $60,000 as a likely floor for the month, pointing to established support and resistance zones that have shaped price action throughout June.
The broader structure reflects a market consolidation phase, where price remains contained between defined levels until a clearer directional catalyst emerges.
Sentiment weakens as fear rises
Market sentiment has deteriorated alongside the decline. The Crypto Fear & Greed Index recently fell to 18, signaling “extreme fear,” a level often associated with heavy selling and heightened caution among traders.
At the same time, Bitcoin futures open interest has dropped sharply from above $42 billion to around $25 billion, indicating a significant reduction in leveraged positions. Such resets have historically preceded periods of stabilization, though not always immediate recovery.
Macro signals remain mixed
Traditional markets offered limited direction. U.S. equities opened mixed, with the S&P 500 up 0.4% while the Nasdaq Composite briefly dipped into negative territory. The muted response came as traders reacted to early signs of progress in U.S.–Iran diplomatic talks.
President Donald Trump stated that ships passing through the Strait of Hormuz would not face additional fees under emerging cooperation terms, helping keep energy markets steady.
Focus shifts to inflation and policy outlook
Attention is now turning to upcoming economic data, particularly corporate earnings from Micron Technologies and the May Personal Consumption Expenditures index.
Economists expect the PCE inflation gauge to reach around 4.1% year-over-year, which would mark its highest level since April 2023. A stronger-than-expected reading could reinforce the Federal Reserve’s hawkish stance, adding pressure to risk-sensitive assets like Bitcoin.
Recent policy signals already suggest a firmer approach, with nine of eighteen Federal Reserve policymakers anticipating at least one rate increase this year.
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