BTCUSD experienced significant pressure last week. After a record dip below $60,000—the first since October 2024—the pair staged a modest recovery, returning to the $63,000–$64,000 range. However, the current upside appears to be more of a technical rebound following a brutal sell-off than a solid reversal.
Capital outflows from spot BTC exchange-traded funds (ETFs) remain a key negative factor for the crypto market. In late May and early June, investors withdrew money for several consecutive sessions. Over the past few weeks, their total amount has reached billions of dollars, signaling fading institutional interest and partial profit-taking after the previous period of explosive growth. Another headwind is capital reallocation toward tech stocks, the artificial intelligence (AI) sector, and upcoming major Initial Public Offerings (IPOs), including SpaceX. With so many alternatives at hand, traders tend to favor other risky assets over Bitcoin.
The macroeconomic environment also weighs on BTCUSD. Impressive US labor market data for May and persistent inflation risks have revived market expectations that the Federal Reserve (Fed) will keep rates elevated for longer. Higher borrowing costs and a stronger dollar are a bad combination for Bitcoin, as well as for other speculative assets. At the same time, geopolitical jitters cannot provide cryptos (or gold) with solid support, as investors remain cautious.
The ultimate recommendation is to sell BTCUSD at the current price, aiming for $59,000 within the next month. To mitigate the risk of adverse market movements, place a Stop Loss order slightly above resistance, at $65,000.
This content is for informational purposes only and is not intended to be investing advice.
