Bitcoin Price Falls 4% on Technical Rejection
Bitcoin price (BTCUSD) fell by about 4% on Tuesday to $61.6k, driven by a technical breakdown below key support levels amid persistent institutional selling pressure.
BTCUSD failed to reclaim the 78.6% Fibonacci retracement level at $64,099.67, a critical resistance derived from its recent swing high to low. BTC had topped $63k on Monday but could not hold the position as sentiment remains downbeat across the crypto market.
Supporting the bearish move, U.S. spot Bitcoin ETFs logged another $91.4 million in net outflows on June 8, extending a nearly four-week streak in which roughly $5 billion has exited the products.
Analysts attribute this to a “macro-driven repricing of risk” as traders reduce exposure ahead of key economic data. The immediate trajectory hinges on the May Consumer Price Index (CPI) report due June 10.
A hotter-than-expected print could trigger a break below the crucial $60,000 support, opening a path toward $55,000.
Conversely, an in-line or cooler reading might help Bitcoin consolidate between $60,000 and $64,100. Bitcoin remains in a downtrend, pressured by technical breakdowns and sustained ETF outflows as the market awaits a key inflation signal.
Bitcoin’s drop to near $60,000 last week sparked a debate on its cause. Michael Saylor pointed to capital rotation into AI infrastructure, while investment firm Arca cited Strategy’s recent small Bitcoin sale as a catalyst, fearing it signals future sales to cover cash obligations.
This is bearish for market psychology as it introduces uncertainty. The narrative that a major accumulator might become a seller could outweigh fundamental arguments, keeping sentiment in “Extreme Fear” until Strategy’s funding strategy becomes clear. Zcash Gains 11% on Successful Emergency Network Upgrade
