Bitcoin slides to $59,100 as hot jobs data fuels bear flag breakdown

Bitcoin fell 3% to $61,100 and touched a fresh low of $59,100 after a blowout May payrolls report pushed rate cut expectations into 2027, draining demand from risk assets.

"Buyers have stepped in after the move lower, but spot demand has yet to return in a meaningful way," Diana Pires, chief business officer at sFOX, said.

The US economy added 172,000 non-farm payrolls in May, well above the 130,000 consensus estimate, with April revised up to 214,000. The 10-year Treasury yield rose to 4.54%, while the dollar strengthened. Bitcoin ETF outflows accelerated alongside the price decline, and Strategy executed its first BTC sale since 2022, further eroding the dip-buyer narrative. More than $500 million in bearish bets were liquidated, the highest figure since April, confirming the recent bounce was a short squeeze rather than fresh buying.

The bear flag pattern that formed after the $59,100 low carries a measured downside target near $51,000 if confirmed. Bitcoin's 200-week SMA at $62,000 remains the critical support level. A weekly close below $62,000, followed by acceptance under $60,000, would activate the bear flag breakdown and expose $51,000 as the next major target.

The Federal Reserve faces a direct binary at the June 17-18 FOMC meeting, with Cleveland Fed President Beth Hammack warning the central bank "may need to act soon." New Chair Kevin Warsh must choose between holding steady or hiking to demonstrate inflation discipline, according to the Wall Street Journal's Nick Timiraos. Brent crude near $92 a barrel adds an inflationary wrinkle that complicates the Fed's calculus.

On the technical side, Bitcoin's four-hour chart shows an ascending triangle forming, with resistance near $63,800 to $64,000. A clean close above $64,000 would target $68,000 to $68,200, but the broader weekly setup remains bearish as long as BTC trades below its 20-week and 50-week SMAs. The weekly RSI near 35 confirms weak momentum.

If the bear flag plays out, Bitcoin could fall below $50,000 for the first time since early 2026, triggering cascading liquidations across the derivatives market.

This article is for informational purposes only and does not constitute investment advice.