Bitcoin Testing A Critical Support After Sharp Market-Wide Selloff

Bitcoin is facing a pivotal moment after a sharp market-wide selloff dragged prices toward a major support level. As bearish momentum begins to slow and signs of buyer interest emerge, the coming days could reveal whether this zone becomes the foundation for a rebound or the gateway to a deeper correction. 

Analyzing Bitcoin’s outlook for June, Lennaert Snyder observed that BTC started the month by breaking below the previous month’s low, a development that has weakened the near-term technical picture. In his view, this early loss of support makes a move toward the prior monthly high near $82,800 significantly less likely.

The analyst explained that monthly clearout candles are relatively rare occurrences, reducing the probability of Bitcoin reclaiming higher levels in the short term. Attention is now shifting toward a major support zone that could influence market direction throughout the remainder of the month.

Snyder also noted that the recent selloff left behind considerable liquidity, creating an environment where prices could become increasingly volatile. As Bitcoin trades within this broader support range, he expects periods of consolidation and choppy price action, along with occasional relief rallies.

Moving forward, the analyst intends to closely track price behavior for potential intraday opportunities and liquidity-driven setups. He added that another sharp downside sweep could trigger additional long liquidations, generating fresh trading opportunities.

Kamile Uray noted that Bitcoin suffered a sharp decline alongside the broader financial markets, bringing the cryptocurrency back to the closely watched $60,000 level. The analyst emphasized that this area has long been considered a major support zone, and a stronger buyer response here could spark a corrective rebound following the recent selloff.

Uray also pointed out that the Relative Strength Index (RSI) remains in oversold territory on both the daily and 4-hour timeframes. Such conditions indicate that bearish momentum may be weakening, increasing the possibility of a short-term recovery.

According to the analyst, the formation of candles with long lower wicks would be an encouraging sign that demand is emerging at current levels. In the event of a rebound, the first resistance to watch sits around $67,500, followed by the more significant $74,000–$75,000 zone. However, Uray cautioned that the risk of further downside will remain until Bitcoin can establish sustained strength above $74,569.

Currently, the $60,000 level remains the key line of defense for the bulls. A decisive break below this support could expose Bitcoin to a deeper decline toward the $55,000–$50,000 region. On the upside, if momentum continues to improve, key resistance levels are at $74,569, $82,885, $98,000, and the $107,000–$109,000 area, with the latter expected to act as a major barrier to further gains.