Key Insights
- Bitcoin dropped down to $61,000 as a result of some losing significant supporting levels.
- Binance whale deposits jumped significantly to 8,200 BTC on June 2.
- The selling pressure grew, with Bitcoin seeing a 14% drop in the correction.
The selling pressure that was observed throughout the market led bitcoin to fall to the $61,000 level. The drop coincided with Binance whale deposits, where large whale holders deposited thousands of BTC to Binance. Nevertheless, whale inflows spiked to multi-month lows during the sell-off, placing additional pressure on Bitcoin’s price as it tested critical support levels, according to CryptoQuant data.
Bitcoin is back at $61,000 as selling pressure grows
Bitcoin had bounced back from higher resistance levels before dropping back to $61,000. The chart displays a significant bearish trend that gained momentum following the breakdown of price’s $71,000 support. Sellers traded the market lower through a few important levels but with little buying pressure.
Formerly, price previously rose to a peak of approximately $81,400, but that was followed by a turnaround. The downtrend accelerated when Bitcoin broke below the crucial support level of $75,000. The asset continued bearish, pushing down towards the $62,700 demand area. The chart shows a short pull back from that area, where the price dipped into Whatley territory – near $61,000.
During the downward slide, there was more trading activity. The stories were aggressive selling pressure seen in large bearish candles that were seen across the market. Bitcoin also extended below the $66,000 level, which served as a support during previous market rallies. The breakdown of this level put momentum in the down direction.
Key support and resistance levels
The chart identifies $62,700 as the immediate support zone. Buyers previously entered this region and slowed downward movement. Price now trades close to this area after the recent sell-off. The market remains vulnerable while Bitcoin stays below former support levels.
The next major psychological level stands at $60,000. Market participants are still closely watching this area. A break below $60,000 would expose lower support zones near $59,800 and $56,500. The chart shows those levels as potential support levels if more selling pressure is seen.
Bitcoin has reached the support level of $66,100 but has a minor hurdle to overcome on the downside. There are some additional resistors around $71200 and $75000. For any real recovery to occur, Price needs to get back to these levels. Also highlighted on the chart are two higher resistance zones: $78,900 and $81,400.
The current market conditions are sellers’ market. Most recent action has been characterised by lower highs and lower lows. Bitcoin continues to be pressured as it is trading below key resistance levels. The chart shows that price is closing in on critical support at $62,700 and that bear trend is continuing.
Binance’s whale BTC deposits doubled in June, while the selloff continues
Whale BTC deposits on Binance have spiked in June amid Bitcoin’s correction, putting more selling pressure on the market. The volume of transactions involving the movement of more than 100 BTC has surged upward on Binance, with data from CryptoQuant indicating that significant amounts of Bitcoin are being shipped to the platform.
According to data from CryptoQuant, Binance has seen an uptick in large transactions, with entities moving more than 100 BTC moving to the platform in a significant way.
Since the beginning of June, Bitcoin has dropped 14% and its losses have been rapid over the past few days. Meanwhile, Binance has seen whale inflows increase substantially during this timeframe. At the same time, Binance has experienced whale inflows that have grown considerably. The biggest inflows were around 8200 BTC on June 2, and again over 6400 BTC on June 4.
In the background, you can see whales have been more active over the last few weeks sustained. The 30-day moving average of Binance whale inflows increased from about 1,200 BTC in mid-April to some 2,800 BTC in early June. It is a significant twofold over a short period of time.
Bitcoin Selloff Intensifies as Whale Inflows Rise
These transfers seem to be timed with Bitcoin’s recent rise and fall. During times of uncertainty, investors tend to increase the amount of deposits to exchanges as they get ready to sell or re-position their holdings.
CryptoQuant data shows that whale inflows are at similar levels as seen in early February when Bitcoin briefly pushed below the $60,000 mark. The return of comparable transfer volumes is an indicator of greater market stress as prices remain weak.
The flow of incoming and outgoing transactions has been heavily skewed toward the buyers, which has added pressure to the market, and Bitcoin’s price is currently under pressure as the market corrects again.
Conclusion
Bitcoin is continuing to struggle in the downtrend while the market sentiment is still bearish. The asset has broken a few key support levels and has retested the lower $61,000 price level after what was a strong $81,400 price area. It has broken some key support levels and has just broken and confirmed the lower $61,000 price area after a strong $81,400 price area.
Meanwhile, Binance has witnessed significant deposits of whales’ bitcoins, as the inflows are on par with those of February when the price of Bitcoin fell below $60,000. The strong inflows in the exchange coupled with the falling prices indicate a greater level of stress for the market. Traders are now primarily interested in the $60,000 psychological support level, with resistance zones holding between $66,100 and $75,000.
