Bitcoin has seen a notable recovery, rebounding more than $3,000 from a significant weekend low, as buyers defended the critical $60,000 support level. This resurgence was partly fueled by a wave of short-covering that helped lift prices back above $63,000. According to data from CoinGecko, Bitcoin traded around $62,700 as of June 8, having briefly dipped below $60,000 on June 6, marking its first breach of this psychological level since 2024.
This recovery follows one of the most challenging periods for Bitcoin this year, during which it shed nearly $19,000 in just 10 days and experienced a weekly decline of approximately 14.6%. The downward pressure intensified following the release of the US Labor Department’s employment report, which revealed an addition of 172,000 nonfarm payroll jobs for May—far surpassing the expected 85,000. These revised figures, which added another 93,000 jobs to prior months, reinforced expectations that the Federal Reserve may maintain a tighter monetary policy for an extended period.
In light of these developments, market sentiment turned increasingly hawkish after BNP Paribas revised its previous forecast for stable interest rates, now predicting three Federal Reserve rate hikes to commence in December. The bank cited ongoing inflation concerns, robust labor market conditions, and risks associated with the ongoing US-Iran conflict. As negative sentiment deepened, leveraged positions began to liquidate rapidly, with CoinGlass reporting that over $155 million in crypto long positions were liquidated in just one hour and total liquidations exceeding $1.7 billion within a 24-hour timeframe.
The situation was exacerbated once Bitcoin fell below $60,000, pushing the Crypto Fear & Greed Index down to a multi-year low of 8. Institutional demand also weakened considerably during this decline, with CryptoQuant indicating that approximately $40 billion left the Bitcoin ecosystem as investors redirected their capital to US equities, particularly those tied to large artificial intelligence firms. Furthermore, a decision by Strategy to sell 32 BTC to meet preferred stock dividend obligations added to the negative sentiment. Although this sale constituted a small fraction of the company’s considerable BTC treasury of around 840,000 BTC, traders perceived it as a departure from the firm’s long-standing strategy of accumulating and holding the cryptocurrency.
However, the tide seems to be turning as attention has once again focused on Strategy. The CEO, Saylor, hinted at a potential return to Bitcoin buying, stirring optimism. Additionally, signs of seller exhaustion began appearing in market indicators, with analyst Scott Melker noting that short-term holders have realized losses at historically high levels. Data revealed that the short-term holder realized profit and loss ratio had plummeted to an all-time low. Approximately 5.3 million BTC held by long-term holders are now at a loss, surpassing the levels seen after the FTX collapse.
While some analysts suggest that the market may have reached a final bottom, dissenting voices caution against premature optimism. CryptoQuant contributor Darkfost reported that realized losses since last October’s peak have reached around $174 billion, still below the $211 billion loss recorded during the bear market of 2022, suggesting room for further declines if capitulation occurs. Market commentator Ardi echoed these concerns, stating that retail investors continue to buy dips while larger market participants are distributing supply during relief rallies—behavior that is not typically associated with major market bottoms.
Recent price actions indicate that the market might be entering a relief phase following extreme liquidation events. CoinGecko’s seven-day chart illustrates Bitcoin’s fall below $60,000 on June 6, followed by a quick recovery and subsequent consolidation between $60,000 and $62,000 over the weekend. On June 8, buyers pushed Bitcoin back above $63,000, though it faced a slight pullback to around $62,700.
Despite the recent recovery, Bitcoin remains below key trend indicators, with the 20-day exponential moving average near $69,265 and the 50-day, 100-day, and 200-day EMAs situated at $72,844, $74,703, and $79,753 respectively. This scenario suggests that the broader trend remains under pressure unless Bitcoin can reclaim these levels. Momentum indicators are also offering mixed signals. The daily relative strength index (RSI) has recovered to approximately 25.8 after briefly dipping to a low of 15.5, which historically signals intense selling and potential seller exhaustion. Nevertheless, the MACD indicator continues to show bearish momentum, remaining largely negative, even though the histogram indicates a potential slowing of downside momentum.
From a technical standpoint, Bitcoin’s successful defense of the $60,000 level stands out as a pivotal development. A sustained hold above this price point could allow buyers to target the 9-day simple moving average around $65,300. Increasing focus would then likely shift to the 20-day EMA near $69,000, marking the first major resistance zone identified on the daily chart. Conversely, failure to uphold support above $60,000 could reinforce bearish sentiments, with potential declines toward the $58,500 and $56,000 support areas on the horizon. As of now, market activity points to a recovery from oversold conditions, but the path forward may hinge on whether buyers can reclaim critical moving averages and reverse the trend of institutional outflows.
