Bitcoin price hits new June lows while open interest stays above $35B

    2024.06.11 | exchangesranking | 16onlookers

    Bitcoin dropped under $67,000 into the June 11 Wall Street open as markets staged a classic pre-inflation report comedown.

    BTC/USD 4-hour chart. Source: TradingView

    BTC price dip: “Much ado about nothing?”

    Data from Cointelegraph Markets Pro and TradingView showed new local Bitcoin (BTC) price lows of $66,696 on Bitstamp — its worst month-to-date.

    Having dropped for almost 24 hours in a row, Bitcoin failed to buck the trend on the day as risk assets prepared for a deluge of United States macroeconomic data and Federal Reserve commentary.

    Now down 3.6% on the day, BTC/USD fielded various downside targets from traders, these extending toward $60,000.

    “Getting closer to support. Will be looking to enter longs if a reversal presents itself,” popular trader Roman told subscribers on X on the day.

    “Ultimately I’ve been eyeing the 67k support for over a week so it’s about time we’re getting close.”
    BTC/USD chart. Source: Castillo Trading

    Fellow trader Castillo Trading agreed, focusing on a slightly lower buy zone at around $64,000.

    “We knew some downside was possible on $BTC. Was hard to open up fresh longs above $70,000. Now, we are getting into an area I am more willing and comfortable looking to add,” part of an X post stated.

    Others called for calm amid overall rangebound price action, with Bitcoin consolidating below all-time highs for nearly three months.

    “Week 15 of chopping below the current all-time highs,” popular trader Jelle noted.

    “We’re off to a red start this week, pushing back into the key support level at $67,500. May be uncomfortable, but nothing has changed. Don’t get shaken out.”
    BTC/USD chart. Source: Scott Melker

    Trader, analyst and podcast host Scott Melker called the latest price action “much ado about nothing.”

    “Decent drop today, but simply testing support at the range EQ - still trading in the top half of the range. 3 months into the predictable chop that comes with this part of the cycle,” he reasoned.

    Open interest presents "high-risk situation”

    A note of caution came from market observers monitoring open interest (OI) on derivatives markets.

    Related: Bitcoin hash ribbons flash the first buy signal since $25K BTC price

    Source: Byzantine General

    This hit new all-time highs in June, passing $37.6 billion, in what has traditionally been a classic warning of BTC price volatility.

    Bitcoin futures OI decreased as price retreated, data from CoinGlass showed, but remained above $35 billion.

    Bitcoin futures open interest (screenshot). Source: CoinGlass

    For Filbfilb, co-founder of trading suite DecenTrader, the writing was on the wall.

    “Price flat, OI up $1.5bn. High-risk situation,” he summarized.

    Filbfilb contributed what he called a “worst case scenario” for BTC/USD, this including downside wicks to as low as $45,000.

    BTC/USD chart. Source: Filbfilb

    This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

    The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other ssues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.