Bitcoin struggled to reclaim the 60,000 dollar mark on Friday as global financial markets continued to face heightened volatility. The daily close below this psychologically significant level—last seen in September 2024—has shifted what was once considered strong support into a resistance zone, raising fresh concerns among investors watching for Bitcoin’s next move.
60,000 dollars emerges as a pivotal resistance level again
According to TradingView data, the BTC/USD pair continued searching for direction after closing a daily session under 60,000 dollars. Market participants betting on a renewed uptrend now identify a firm break back above 60,000 as a crucial technical milestone to watch in the near term.
Meanwhile, Asian stock markets felt mounting selling pressure. Concerns over technology shares were especially acute in South Korea, where circuit breakers were triggered after indexes saw a dramatic 8 percent tumble. In contrast, US equities proved somewhat resilient during the same period, with the S&P 500 and Dow Jones managing to hold in positive territory as this report was written.
An unusually eventful day for Bitcoin is underway; the upcoming quarterly options expiry could also have a strong influence on short-term price action, according to traders following the situation closely.
Tech sector weakness stays at the forefront
The backdrop to market fragility continues to be steep price drops in large-cap technology stocks. However, Micron Technologies offered a glimmer of relief, as its better-than-expected results provided some risk appetite during intraday sessions. Still, the broader picture reveals persistent retracement across many leading tech firms.
Market analysis from The Kobeissi Letter points to the possibility of a wider rebound, noting that several major technology shares have now fallen more than 50 percent from their historic highs. Notably, shares of the leading crypto exchange Coinbase have plunged 69 percent during this correction. The Kobeissi Letter is well regarded for its macro, equity, and commodities-focused research.
Most of the major technology companies are now in a bear market zone, with many stocks registering more than a 50 percent drop from their recent peaks, The Kobeissi Letter highlighted.
Inflation data could prove decisive for risk assets
QCP Capital, in its latest outlook, emphasized that US inflation trends will likely remain a key driver for risk assets. The company noted current estimates for the core Personal Consumption Expenditures (PCE) index at 3.30 percent and the headline PCE at 3.82 percent. Both figures remain noticeably above the US Federal Reserve’s inflation target.
Glossary: PCE stands for Personal Consumption Expenditures price index, which is one of the Federal Reserve’s preferred measures of inflation. Core PCE excludes more volatile categories like food and energy to better reflect underlying price trends.
The PCE data released for May showed the highest annual increase since mid 2023. Analysts warn this may add further pressure to both equity and crypto markets through shifting rate expectations.
Analysts keep a close eye on the 200 week average
Crypto analyst Michaël Van de Poppe notes that market participants are closely monitoring whether Bitcoin’s downward momentum will persist in the short term. He highlighted the significant position of Strategy—the company formerly known as MicroStrategy, which holds the world’s largest corporate Bitcoin reserves—along with its financing division Stretch, as potential pointers for future price action.
According to Van de Poppe, the sharp pullback in Stretch and Bitcoin’s hesitation near the 60,000 dollar level is not yet a decisive bearish signal. The analyst points to a developing bullish divergence on the daily chart, but stresses that this technical pattern has not been confirmed. For now, the 200 week simple moving average at 62,243 dollars remains the main technical level in focus among investors.
