After an unsuccessful recovery attempt, Bitcoin has once again approached its annual low near 59,000 dollars. Short-term downside risks have gained the spotlight, with the inability to reclaim key resistance zones fueling renewed discussions about where the next market bottom might form.
Liquidity clusters intensify below 59,000 dollars
Bitcoin’s latest rebound failed to penetrate the daily value gap between 67,500 and 70,500 dollars, losing steam well before that zone. Fresh selling pressure gathered around the 50-day and 100-day exponential moving averages, reinforcing these levels as strong resistance for the cryptocurrency.
On the four-hour chart, the price broke below the rising channel, confirming a shift to a bearish structure from a technical perspective. Around 60,700 dollars now serves as the first internal support, while the major annual low at 59,000 dollars lurks just beneath as the next critical level.
Liquidation data support the importance of this area. Nearly 4 billion dollars in cumulative leveraged long positions have piled up just above 59,000 dollars. If prices retreat back to this zone, forced liquidations and the unwinding of belated long bets may become inevitable. On the upside, the next significant liquidity pocket stands near 68,000 dollars, where over 4.75 billion dollars of cumulative positions are concentrated.
Crypto analyst Killa suggested that Bitcoin might reverse direction after approaching the liquidity pool below 60,000 dollars without necessarily absorbing it all. In Killa’s view, the market often moves contrary to levels that receive the most attention from participants.
The relative strength index (RSI) has also dropped close to oversold territory. Should Bitcoin once again touch its yearly lows, a plunge below the 30 level on the RSI could occur—an oversold signal that often sparks a sharp rebound once liquidations have run their course.
Exchange inflows reach their lowest in months
Meanwhile, data shared by CryptoQuant analyst Amr Taha indicates that mid-sized Bitcoin investors reduced their exchange transfers significantly as of June 19. Around 3,500 BTC entered Binance, 3,000 BTC went into Coinbase, and Coinbase Prime received about 1,700 BTC. These figures represent the lowest daily inflows since April 4.
CryptoQuant is known for tracking on-chain metrics and exchange flows, offering short-term clues on investor activity. Such data can point to whether participants are preparing for imminent sales or holding back.
Transfers to exchanges are generally considered a potential signal of selling intent by investors. Lower inflows suggest that fewer coins are being positioned for near-term selling, possibly hinting at a decrease in immediate selling pressure in the market.
Analysts remain cautious on short-term outlook
However, exchange flow data alone does not indicate the emergence of new buying demand. Instead, the numbers primarily reveal that mid-sized investors have slowed transfers to exchanges while Bitcoin hovered around 62,000 dollars. As Bitcoin tests a large liquidity area near its annual low, selling pressure from the exchange side appears to be moderating.
Some market participants argue that excessive pessimism in the short run may be unwarranted. BTC trader LP has warned that a bottoming process could develop as June draws to a close, hinting at the potential for volatility and opportunities as the month ends.
