Bitcoin is currently facing strong selling, especially after falling below important price levels and losing a key market structure. Although buyers have temporarily prevented prices from falling below $60,000, technical analysis and on-chain data indicate the market remains fragile. For Bitcoin to truly recover, it needs to break through several resistance levels above its current price.
Bitcoin Price Analysis: The Daily Chart
Looking at the daily chart, Bitcoin has clearly fallen below a significant upward trend that had been holding the price up for most of the year. This drop gained momentum after the price fell below $70,000, and the price then fell around $10,000 in just four days.
After the recent price drop, Bitcoin found strong support right around $60,000 – thankfully, I saw buyers come back in at that level. The latest price action and the fact that the RSI bounced from being heavily oversold suggest things are stabilizing above $60K. This is a good sign because it looks like we’ve avoided another drop down towards the $51,000 range for now.
From my analysis, the overall trend still points downwards. The price is consistently staying below both the 100-day and 200-day moving averages, and I’m seeing those averages come closer together around the $70,000 level. This suggests that area will likely act as a strong resistance point, and confirms there’s significant selling pressure above us.
If Bitcoin tries to bounce back, it will likely first encounter strong resistance between $65,000 and $68,000. If it moves higher than that, there’s a significant selling area around $72,000-$74,000 – this is where the price previously broke down and found support. Bitcoin would need to break back above this range to suggest the current downward trend might be ending.
BTC/USDT 4-Hour Chart
After a significant drop, Bitcoin appears to be stabilizing on the 4-hour chart. It fell sharply from $74,000 but found support near $60,000 and has been trading in a slightly upward channel, suggesting some positive momentum is building. The Relative Strength Index (RSI) indicator, which previously indicated Bitcoin was oversold, is now recovering and shows that the selling pressure is easing.
Although things are getting better, the current improvement isn’t very strong yet. The market is nearing a key price range between $65,000 and $68,000 where selling might pick up again. Whether this bounce turns into a full recovery or just a temporary rise will depend on what happens in that zone.
If Bitcoin rises above $68,000, it could then aim for the $72,000 to $74,000 range, which is a key resistance level. However, if it falls below its current upward trend, it might test support around $60,000 again. A drop below that would likely lead to further losses, potentially down to $51,000. Currently, the market seems to be pausing and experiencing temporary bounces, but there’s no clear sign yet of a long-term change in direction.
On-Chain Analysis
The UTXOs in Profit (%) metric is a key on-chain indicator that shows what percentage of Bitcoin’s unspent transaction outputs are currently profitable. In the past, when this number has risen above 90%, it’s often signaled a strong bull market. Conversely, significant drops in this metric have frequently coincided with major price corrections and selling pressure.
As a researcher, I’ve observed a significant drop in this key metric – it’s now around 50%. This represents a really sharp decline in how profitable the network is, and it’s quite visible when looking at the data. Currently, only about half of all unspent transaction outputs, or UTXOs, are actually showing a profit. This highlights just how substantial the recent price correction has been and indicates a large amount of UTXOs are now held at a loss.
Big drops in profits often happen towards the end of a market downturn, after those with less confidence have already sold their investments. But these drops can also signal a pause in the decline, as the market adjusts to recent losses and tries to stabilize.
Bitcoin staying above the $60,000 level, combined with low profitability for older bitcoins, suggests a potentially important turning point. If buyers can maintain this support and drive the price higher, the recent drop in profitability could indicate that sellers are finished, and a recovery is possible. However, current data still shows a stressed market that hasn’t regained its previous strength.
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2026-06-13 19:57