BTC price risks $60K dive as Bitcoin bid liquidity thins on new 3% dip

(Coins Telegraph)-12/06/2024

Data from Cointelegraph Markets Pro and TradingView showed a 3% dip taking Bitcoin to lows of $67,320 on Bitstamp after the daily close.

Lacking support at the key $69,000 level, Bitcoin bulls failed to stave off a downward move through thin exchange order book liquidity.

The day prior, Keith Alan, co-founder of trading resource Material Indicators, had warned that insufficient bids could be a warning sign for BTC price strength.

“Sure we have some laddered bid support in here, but not a heavy, heavy concentration of it — and really, it’s not even heavy down to $60,000 if I can be completely honest,” he said during his latest YouTube update.

An accompanying chart covered order book liquidity for the BTC/USDT pair on the largest global crypto exchange, Binance.

In a subsequent post on X, Material Indicators noted that with the latest move down, Bitcoin had formally rejected $69,000 as support and had also given up the 21-day moving average — a key short-term trendline.

“Support at the 21-Day Moving Average and the R/S Flip at $69k have both been invalidated,” it read.

“This move isn’t over. In fact I expect these killer whale games to continue up to and through JPow’s comments on Wednesday and economic reports on Thursday.”

As Cointelegraph reported, the week’s main potential volatility catalyst for Bitcoin and crypto price action is United States macroeconomic data — the Consumer Price Index (CPI) and Producer Price Index (PPI) — along with the Federal Reserve’s latest interest rate decision and accompanying press conference by Chair Jerome Powell.

“So far CPI/PPI has been around the highs of this range & FOMC resulting in local lows,” popular trader Skew continued on the topic.

Mixed opinions on Bitcoin support

In his own market analysis, meanwhile, fellow trader and commentator Credible Crypto suggested that the outcome of the down move may not be as radical as a trip to $60,000.

With liquidity being added and pulled from the market at will by large-volume traders, appetite for BTC could spare bulls any lower than even $65,000.

“We continue to see spot absorption on each and every move down, even on lower timeframes,” he summarized to X subscribers.

Credible Crypto noted that overhead resistance at $72,000 had been “pulled immediately” once Bitcoin began reversing.

“What are the odds we front run range lows and 62-65k and just reverse from here? I think they are decent,” he concluded.

“No guarantees of course, but we will know soon enough with developing PA over the next 24 or so hours.”