Bitcoin rebounds after drop below $60K but bears are still in control

Bitcoin has recovered more than $3,000 from its weekend low after buyers defended the $60,000 level, and a wave of short covering helped lift prices back above $63,000.

According to CoinGecko data, Bitcoin traded near $62,700 on June 8 after briefly falling below $60,000 on June 6, its first break of the level since 2024. 

The rebound followed one of the cryptocurrency's weakest stretches this year, with BTC losing nearly $19,000 in 10 days and posting a weekly decline of about 14.6%.

Pressure intensified after the US Labor Department reported 172,000 nonfarm payroll additions for May, far above expectations of 85,000. 

Revised figures added another 93,000 jobs to the previous two months, reinforcing expectations that the Federal Reserve could keep monetary policy tighter for longer.

Market expectations turned increasingly hawkish after BNP Paribas abandoned its previous forecast for stable interest rates and projected three Federal Reserve rate hikes beginning in December. 

The bank cited persistent inflation concerns, strong labor market conditions, and risks tied to the ongoing US-Iran conflict.

As sentiment deteriorated, leveraged positions unraveled rapidly.

CoinGlass data showed more than US$155 million (approx. $271.3 million) in crypto long positions were liquidated within an hour, while total liquidations exceeded US$1.7 billion (approx. $3 billion) over a 24-hour period. 

Selling accelerated once Bitcoin lost the $60,000 threshold, pushing the Crypto Fear & Greed Index to a multi-year low of 8.

Institutional demand also weakened during the decline.

CryptoQuant reported that nearly US$40 billion (approx. $70 billion) left the Bitcoin ecosystem over a short period as capital flowed into US equities, particularly large artificial intelligence-related companies. 

Another factor weighing on sentiment was Strategy's decision to sell 32 BTC to help fund preferred stock dividend obligations. 

While the sale represented a tiny fraction of the company's roughly 840,000 BTC treasury, traders viewed it as a break from the firm's long-standing commitment to accumulating and holding Bitcoin.

Here’s why Bitcoin could recover

Attention has once again turned towards Strategy over the weekend after Saylor teased that the company may resume its Bitcoin buying.

Meanwhile, signs of seller exhaustion began appearing across several market indicators.

Crypto analyst Scott Melker noted that Bitcoin short-term holders are realising losses at the largest level on record.

Data cited by Melker showed the short-term holder realised profit and loss ratio had fallen to a new all-time low, while approximately 5.3 million BTC held by long-term holders were sitting at a loss, exceeding levels seen after the FTX collapse.

Additional on-chain data cited by analyst Seth showed the percentage of Bitcoin holders in profit had fallen to a trendline associated with major cycle lows in previous market downturns.

Not all analysts agree that a final bottom has been established.

CryptoQuant contributor Darkfost reported that realized losses since the October peak have reached roughly US$174 billion (approx. $304.5 billion), still below the US$211 billion (approx. $369.3 billion) recorded during the 2022 bear market.

Darkfost argued that historical patterns leave room for additional downside if capitulation continues.

A similar warning came from market commentator Ardi, who said retail investors have continued buying dips while larger participants distribute supply during relief rallies. 

According to Ardi, such behavior is not typically associated with major market bottoms.

Bitcoin price analysis

Recent price action suggests the market has entered a relief phase after an extreme liquidation event.

CoinGecko's seven-day chart shows Bitcoin falling below $60,000 on June 6 before quickly reclaiming the level and spending much of the weekend consolidating between $60,000 and $62,000. 

By June 8, buyers had pushed BTC back above $63,000 before a modest pullback toward $62,700.

On the daily chart, Bitcoin remains below all major trend indicators despite the recovery. 

BTC/USD 1-day price chart. Source: TradingView.

The 20-day exponential moving average sits near $69,265, while the 50-day, 100-day and 200-day EMAs stand near $72,844, $74,703 and $79,753, which means the larger trend remains under pressure unless Bitcoin can reclaim them.

Momentum indicators paint a mixed picture.

The daily RSI has recovered to around 25.8 after briefly dropping near 15.5, its lowest reading since the March 2020 COVID-era crash. 

Historically, such readings have appeared near periods of intense panic selling and seller exhaustion.

BTC/USD 1-day price chart. Source: TradingView.

Simultaneously, the MACD indicator has remained bearish, with the MACD line still below the signal line and both positioned deep in negative territory. 

However, the histogram has started contracting, which often signals that downside momentum is slowing.

From a price structure perspective, Bitcoin's defense of $60,000 remains the most important development. 

A sustained hold above that area could allow buyers to target the 9-day simple moving average near $65,300. 

Beyond that, attention would likely turn toward the 20-day EMA near $69,000, which represents the first major resistance zone identified on the daily chart.

Failure to maintain support above $60,000 would strengthen the bearish case outlined by Darkfost and Ardi. 

Under that scenario, Bitcoin could slip towards the $58,500 and $56,000 areas, which are the next major support zones.

As of publication, price action points to a market recovering from an oversold condition rather than one that has fully confirmed a new uptrend. 

Whether Bitcoin can build on the rebound will likely depend on whether buyers can reclaim key moving averages and whether institutional demand returns after weeks of sustained outflows.