Following a steep decline that saw Bitcoin fall below the $60,000 threshold, the world’s largest cryptocurrency has managed to hold firm at a critical support zone. With the dust settling, market participants are now focusing their attention on the $65,000 to $66,000 range. According to analysts, the short-term trend will depend on whether Bitcoin can push through these key liquidity levels.
Long-term support zones in focus
During the latest selloff, Bitcoin briefly dropped below the February low of around $60,000. However, the coin quickly recovered, closing the week above both the 200-day simple moving average and the 200-day exponential moving average on the weekly chart. Historically, these two indicators have been viewed as major support levels during corrective phases in previous bull cycles.
Daan Crypto Trades noted that after clearing out the February low, Bitcoin bounced and managed to remain above both the weekly 200 simple and 200 exponential moving averages, calling this crucial for maintaining the overall structure.
Current data shows Bitcoin trading near $63,200, with the 200-week simple moving average hovering around $62,000 and the 200-week exponential moving average near $68,800. Bitcoin’s ability to attract buyers around these long-term trend indicators highlights ongoing support from bullish investors.
Mini glossary: An exponential moving average gives greater weight to recent price movements, making it a more responsive trend indicator. A liquidity heatmap visualizes where buy and sell orders are concentrated across price ranges in the market.
The $64,000 to $66,000 corridor comes into play
Despite the recent recovery, analysts remain cautious about declaring a confirmed shift in momentum. Daan Crypto Trades warned that a clear breakdown below the weekly 200 simple moving average could heighten downside risks, with the $48,000 to $50,000 zone emerging as the next significant support level should this occur.
Another analyst, Kaz, highlighted that Bitcoin has rebounded from the demand zone near $61,000 and is now targeting the liquidity cluster between $65,000 and $66,000. This price range, according to Kaz, is likely to serve as a take-profit region for long positions. However, if internal market dynamics do not strengthen, the $64,000 area could see more cautious trading activity.
Kaz observed that the price is currently caught between two powerful liquidity areas, suggesting the $65,000 to $66,000 band above and the $58,000 to $60,000 band below will play a decisive role in the next move.
Market awaits data releases and volatility triggers
A look at the liquidity heatmap indicates significant order clusters positioned both above and below the current price. Bulls are eyeing the $65,000 to $66,000 target, while the $58,000 to $60,000 band stands out as another major focal point for market activity.
Looking ahead, upcoming US inflation data and the date of June 10 are being closely tracked as potential catalysts for volatility. Analysts caution that the market often undergoes sharp movements ahead of major macro events, only to reverse course once the news breaks. As such, despite the recent bounce, the possibility remains that Bitcoin may revisit lower support zones before mounting a sustained rally.
