Bitcoin (BTC) Plunges Below $69K: Here’s Why It Could Get Even Worse Soon

The past few days have been rough for the primary cryptocurrency, whose price once again slipped below $69,000.

One popular analyst believes the valuation could now be headed toward $65,000, while many others warn of even deeper declines ahead.

The Worst Has Yet to Come?

Bitcoin has tumbled by double digits over the past week and currently trades at around $68,600 (according to CoinGecko), while its market capitalization has fallen under $1.4 trillion.

Some of the potential reasons for the plunge include increased tensions in the Middle East, the Mt. Gox transfers, and Strategy’s decision to sell BTC. As CryptoPotato reported, the company offloaded 32 units for approximately $2.5 million to support preferred stock distributions. Even though Strategy doesn’t appear to have abandoned its BTC accumulation plan, its recent sale has likely stirred panic among investors.

BTC’s pullback has become a main topic of discussion on crypto X, with numerous market observers now envisioning further pain for the bulls. Ali Martinez, for instance, recently described the $71,300-$73,000 range as a “critical support cluster,” adding that a breakdown could result in a drop to $65,000. He later said the asset has broken below key levels, strengthening the bearish outlook and increasing the probability of a decline to the depicted area.

Carl Moon and Ted are also among the pessimists. The former reminded that BTC’s last two cycle bottoms occurred after nine red monthly candles, saying that the asset has had six so far during this phase.

For his part, Ted spotted a “massive liquidity cluster” around $55,000-$65,000 that could eventually be taken out. “That doesn’t mean a bounceback won’t happen here, but Bitcoin hasn’t bottomed yet,” he claimed.

The increased amount of BTC held on crypto exchanges is another worrying factor. CryptoQuant’s data show that today (June 2), the figure has risen to roughly 2.71 million, the highest level since March. This development doesn’t guarantee a further price decline but increases the immediate selling pressure.

BTC Exchange Reserve, Source: CryptoQuant

The Bullish Signal

Contrary to the pessimistic price predictions, BTC’s Relative Strength Index (RSI) suggests a price rebound might be on the horizon. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea about potential reversal points.

It runs from 0 to 100, where anything below 30 indicates the asset is oversold and ready for a possible resurgence, while ratios above 70 are considered warning signs of a correction. Currently, the RSI stands at around 18, representing the lowest level since the beginning of February.

BTC RSI, Source: CryptoWaves

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