TLDR
- Bitcoin dropped to a new cycle low near $58,075 after a failed recovery attempt.
- Price briefly rallied to $67,248 before sellers regained control.
- Bitcoin currently trades around $60,300 but remains down across key timeframes.
- The breakdown pattern confirmed bearish continuation after support turned resistance.
- RSI shows hidden bearish divergence, signaling further downside pressure.
Bitcoin (BTC) extended its decline this week after a brief recovery earlier this month. The asset dropped to around $58,075, marking a new cycle low. This move followed a failed rebound that briefly supported bullish sentiment.
Bitcoin Breakdown Continues After Failed Recovery
Bitcoin traded near $59,100 on June 5 before rebounding quickly to $64,185. It later climbed to $67,248 by June 15, but sellers returned. Price action then reversed sharply and pushed the asset back toward $58,000.
The asset now trades near $60,300, although losses remain across multiple timeframes. It is down 2.35% daily, 21% monthly, and about 31% year-to-date. This trend reflects continued pressure from sellers across the market.
The daily chart shows a clear breakdown pattern after Bitcoin lost a key support level. It attempted to reclaim that level but failed during a retest. This rejection confirmed a bearish continuation structure.
Bitcoin also remains below former support zones and key exponential moving averages. These indicators reflect ongoing weakness across short-term and medium-term trends. As a result, the broader structure remains under pressure.
Momentum indicators continue to show downside strength despite brief recoveries. The recent bounce formed what analysts describe as a bull trap. Bitcoin price moved higher, but indicators failed to confirm the shift.
The Relative Strength Index shows hidden bearish divergence during the rebound phase. This pattern often signals continuation in an established downtrend. It also suggests that selling pressure remains active.
On-Chain Metrics Signal Weak Momentum
CryptoQuant founder Ki Young Ju said Bitcoin has not reached its cycle bottom. He referenced the four-year rolling realized price risk and reward ratio. According to him, the asset still trades above its realized price level.
He stated, “Bitcoin remains above realized price, which reflects the average investor cost basis.”
In past cycles, price moved closer to that level before forming a bottom. This pattern has not appeared in the current cycle.
Ki Young Ju added, “If Bitcoin avoids this move, it may suggest a different cycle structure.” However, current data still aligns with historical trends. The asset has not completed the typical bottom formation process.
Meanwhile, CryptoQuant analyst Zizcrypto tracked short-term holder realized price changes. The metric turned negative in mid-March and declined further into June. It reached around -24% by June 23.
This data shows that short-term holders now hold positions below last year’s average cost. Zizcrypto said this reflects weaker momentum among newer investors. It also points to reduced speculative activity.
He compared the current decline with previous market resets. Earlier cycles showed drops between 55% and 65% in similar metrics. The current decline remains less severe in comparison.
Zizcrypto stated that short-term momentum has not recovered yet. He noted that the metric remains weak despite price stabilization attempts. This data highlights ongoing pressure within the market.
