Bitcoin fell nearly 3% toward $63,000 after stronger-than-expected U.S. labor market data strengthened the Fed’s hawkish outlook and dampened hopes for short-term interest rate cuts.
The number of new jobless claims for the week ending June 13 was 226,000, down from a revised 230,000 the previous week, according to U.S. Department of Labor data.
The report was released a day after the Federal Reserve held interest rates unchanged at 3.50% to 3.75% at its June 17 FOMC meeting, the fourth straight session of interest rates, as policymakers predicted the possibility of further tightening in 2026. The outlook prompted traders to reduce their exposure to risky assets.
Oil markets are offering little support, even as oil prices plummet on reports of progress towards a framework agreement between the US and Iran. While lower energy prices may ease inflation concerns, traders are still keeping an eye on the Fed’s latest outlook and the resilience of the U.S. labor market.
Derivatives markets also turned defensive. Bitcoin ($BTC) fell below $64,000 as leveraged long positions were spilled across major exchanges while traders reassessed the possibility of short-term interest rate cuts. At the same time, continuing unemployment claims increased to 1.81 million, providing some evidence of labor market weakness, but failing to offset the market reaction to the decline in overall unemployment claims.
Bitcoin loses support in ascending channel as sellers target illiquidity zone
The 4-hour chart shows that Bitcoin is below the lower end of the ascending channel that has driven price action higher since the rally from around $59,000 on June 5th. This breakdown occurred just below the 61.8% Fibonacci retracement level near $64,950, a zone that previously served as support during the recent recovery attempt.
The next major support is located near the 78.6% Fibonacci retracement level at $62,400. A daily close below this area could expose the June low near $59,175, which also represents a downside objective measured from channel failure.
Along with the breakdown, momentum indicators also weakened. The RSI on the 4-hour chart has fallen towards 38 and is below neutral territory, while the MACD has produced a bearish crossover and moved deeper into negative territory.
On the daily chart, Bitcoin is also forming a bearish flag after the rebound from June lows near $59,175 stalled below the $67,000-$68,000 resistance zone. If the flag breakdown is confirmed, the bearish view will strengthen and the focus will return to the $60,000 to $59,175 support area.
Chaikin Money Flow remains below zero at approximately -0.12, indicating that capital continues to flow out of the market despite last week’s attempted rebound.
Liquidation data from CoinGlass highlights a dense cluster of leveraged positions between $63,000 and $63,500. Additional liquidity is around $61,000 and $62,000, but significant short-term liquidation zones remain around $65,000 and $66,500. Volatility is likely to remain elevated for the next few sessions as Bitcoin moves directly into long leverage intensive trading.
Cryptocurrency analyst Altcoin Sherpa commented on the recent breakdown and warned that Bitcoin could revisit the $60,000 area within days if the current support area breaks.
$BTC Honestly, it doesn’t look great in a short time frame. I hope this green box holds, but there’s a good chance it will probably go back to 60,000 in the next few days… pic.twitter.com/1FxQ8ys7iF
— Altcoin Sherpa (@AltcoinSherpa) June 18, 2026
A break below $62,000 could open the door to retest June lows.
Analysts are increasingly focused on whether Bitcoin can defend its current support area. According to cryptocurrency analyst Michael Van de Poppe, the market is approaching a pivotal level that could determine its next direction.
“This is a level that needs to be maintained.” $BTC. That’s extremely important. If not, it will test the lows and the market will fall further in altcoins. ”
A sustained move below $62,400 would strengthen bearish sentiment and increase the likelihood of a retest of the June lows near $59,000. Beyond technical factors, further upside surprises in inflation data or more hawkish comments from Fed officials could further dampen expectations for policy easing and add pressure to the overall crypto market.
For the bulls, regaining the broken channel support and recovering the $64,950-$66,700 area would be the first sign that the sellers are losing control. Until then, traders remain focused on the downside liquidity zone as Bitcoin struggles to stabilize following the Fed meeting and better-than-expected labor market data.
