Bitcoin (BTC) hit fresh 21-month lows on Wall Street on Thursday as high U.S. inflation unsettled stock markets.
Key points:
- Bitcoin returns to its lowest level since September 2024, falling to $58,000.
- US PCE inflation shakes stock markets, with Nasdaq 100 losing 2% in just 30 minutes.
- BTC’s correction reflects the price action seen during the 2022 bear market.
Crypto Liquidations Surpass $600 Million in an Hour as BTC Price Falls
Data from TradingView showed BTC/USD fell to $58,035 on Bitstamp – a level it last traded at in September 2024.
BTC/USD Hourly Chart. Source: Cointelegraph/TradingView
The May print of the U.S. Personal Consumption Expenditures (PCE) Index came in at 4.1%, setting a fresh three-year record.
“Compared to the previous month, the PCE price index for May increased by 0.4 percent. After excluding food and energy, the PCE price index increased by 0.3 percent.” data release – reported the Bureau of Economic Analysis (BEA).
“Compared to the same month a year ago, the PCE price index for May increased by 4.1 percent. Excluding food and energy, the PCE price index increased by 3.4 percent compared to the previous year.”
US PCE percentage change over one month (screenshot). source: BEA
Stocks responded with volatility, with the Nasdaq Composite Index down 0.5% at the time of this report, while the S&P 500 managed to rally higher.
Meanwhile, the Nasdaq 100 saw a larger, keen drop of 2% in just 30 minutes at the opening.
“What a chart,” trade resource The Kobeissi Letter replied to X.
Bitcoin itself caused significant liquidation of long positions, including: CoinGlass which means the total liquidation of cryptocurrencies will be $600 million in one hour.
History of cryptocurrency liquidation (screenshot). Source: CoinGlass
Commenting, market participants suggested that price movements were artificially managed to narrow positions.
“$BTC is being manipulated,” pseudonymous trader Killa he said X followers
“Whenever the BTC price is below $60,000, this is our manipulation under a significant low of $60,000 on a weekly and quarterly basis. This is why the order book is stacked beneath us.”
Source: Killa/X
Niels Klaver, co-founder of the STABL Agency crypto platform, suggested that BTC/USD “appears to be heading towards a final bear market decline.”
“The target goal remains $55,000,” he added, referring to more and more popular low term price target.
BTC/USDT weekly chart. Source: Niels Klaver/X
Bitcoin analysis sees fresh resistance near $65,000
As BTC price action attempted a modest rebound, trader and analyst Rekt Capital had already done so described $60,000 support as ‘clear weakening’.
Related: The four-year BTC price trend requires 76,000. dollars as analysis shows Bitcoin ‘not broken’
“When the month closes in June, we will know at what price July will potentially trigger an increase in post-crash aid,” he added. Post X To read.
BTC/USD monthly chart. Source: Rekt Capital/X
Rekt Capital maintained that the market was behaving similarly to 2022, with the 50-month exponential moving average (EMA) tipped to become fresh resistance next.
BTC/USD monthly chart. from 50EMA. Source: Cointelegraph/TradingView
