Over the weekend, Bitcoin ($BTC) was able to rise 8.6% from $59.1,000 to $64,200. After setting this local high on Sunday, June 7th, Bitcoin tested the same resistance zone at around $64.2 million the next day.
Since then, bulls have been unable to push prices higher. Although Bitcoin could rebound, traders and investors should remember that the higher time frame bias remains bearish.
short term $BTC Demand is not enough to override loss selling
After a decline through Friday, June 5th, control appears to have returned to buyers. Crypto analyst Axel Adler noted that net taker volume increased over the weekend, which pushed the price towards $64,000.
However, similar to the short-term buying after the May 24 selloff, the current price rebound does not need to be much higher.
The analyst also demonstrated that Bitcoin’s realized P&L 7DMA has been negative for 22 consecutive days. Additionally, this metric did not reach levels near historic lows in realized losses.
Taken together, these findings highlight the ongoing stress and capitulation phase of the market, with sellers panicking and selling at a loss.
Bitcoin price prediction based on price fluctuations
The 4-hour chart showed a solid bearish structure in place. The current bounce has not reached any of the major Fibonacci retracement levels such as $66.8K and $71.2K.
Sentiment remained extremely bearish as sellers moved their holdings at a loss. Although it seems unlikely for Bitcoin to rebound above $70,000 at this point, traders should prepare for that possibility.
A more likely scenario is a bearish continuation from the $65,000-$66,000 overhead supply zone.
Final summary
- Bitcoin net taker flow surged into positive territory over the weekend, but it may not be enough to reverse Bitcoin’s gloomy mood.
- Although the 4-hour chart showed that the price could jump to $71.2,000, the overall trend remains bearish and the pullback does not indicate a trend reversal.
