Bitcoin's breakdown below $69,000 has opened the door to a potential 25% decline, with technical and macro forces aligning against the largest cryptocurrency.
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Bitcoin faces 25% correction risk as expanding triangle targets $55,000
Bitcoin's breakdown below $69,000 has opened the door to a potential 25% decline, with technical and macro forces aligning against the largest cryptocurrency.
Bitcoin fell below $69,000 on June 2, extending its decline as a bearish technical pattern pointed to a potential drop toward the $53,000 to $55,000 zone.
"The market has formed an expanding triangle, a formation traditionally known for its high reliability on the Bitcoin chart," Peter Brandt, a veteran trader with 50 years of experience, said. The technical target of this pattern points to the $53,000 to $55,000 area, he said.
The selling accelerated after Strategy recorded its first sale of part of its Bitcoin holdings in three years, wiping almost $5,000 off the price. Spot Bitcoin ETFs in the US posted their 11th consecutive day of outflows, with a daily net outflow of $483.7 million. The macro backdrop added pressure as JOLTS job openings surged to 7.618 million against a 6.866 million forecast, reinforcing expectations that the Federal Reserve will keep rates higher for longer.
A return above $75,000 would invalidate the bearish pattern, Brandt said. All eyes now turn to Friday's May unemployment report. A reading below the 4.3% consensus could accelerate Bitcoin's slide toward $53,000, while a softer print above 4.4% might trigger a relief rally toward the $75,000 lifeline.
$483.7 Million in Daily ETF Outflows Deepen Bearish Pressure
The institutional exodus has been relentless. US spot Bitcoin ETFs have now bled capital for 11 straight sessions. The $483.7 million single-day outflow on June 2 marked one of the largest since the products launched in January 2024. On-chain data from Glassnode shows that short-term holders have been distributing at a loss, with the Spent Output Profit Ratio for entities holding BTC for less than 155 days falling below 1.
$55,000 Beckons as Next Major Support Zone
The $54,000 to $55,000 area represents a major demand zone on the weekly chart. A break below that level could open the door to a deeper correction toward $40,000, with the bear-case scenario targeting $35,000 if selling becomes panic-driven. The CME Group's launch of 24/7 Bitcoin and crypto futures trading saw more than 7,200 contracts traded over the weekend, worth around $50 million, signaling growing institutional demand for round-the-clock exposure despite the downturn.
This article is for informational purposes only and does not constitute investment advice.
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