Bitcoin tests $60,000 support as extreme fear grips crypto market

Bitcoin fell 3.2% to $60,300 as of 14:00 UTC on June 6, testing a support level that will determine whether a cycle bottom forms or a 40% decline unfolds.

"The $60,000 area is the line in the sand," Daan Crypto Trades, a pseudonymous trader, said on X. "The weekly 200MA sits here too, so a breakdown below this level would be significant."

The move comes after Bitcoin erased 13.5% in its worst weekly loss of 2026, with the total crypto market cap shedding more than $2 trillion since October 2025, according to CoinGecko data. Open interest across major exchanges declined alongside price, while perpetual futures cumulative volume delta showed aggressive selling, per Coinglass data as of 14:00 UTC. The 200-week simple moving average, currently at $61,626, was briefly breached during the slide — a pattern that closely mirrors the 2022 bear market bottom, according to analyst Rekt Capital. Bitcoin's market dominance rose to 54.2% as altcoins suffered steeper losses, with Ethereum falling 4.1% to $3,120 over the same period.

A decisive break below $60,000 could trigger cascading liquidations, pushing Bitcoin toward $36,000 — a 40% decline from current levels that would erase all gains since early 2024. Conversely, a strong bounce from this zone would establish a local bottom and set the stage for a relief rally, with resistance at $68,200 as the first upside target, according to order-book analysis from Coinglass.

$420 Million in Longs Liquidated as Selling Pressure Mounts

The selloff has flushed out leveraged long positions, with $420 million in long liquidations across Binance and OKX in the past 24 hours, according to Coinglass. Spot cumulative volume delta on Binance reached extreme negative readings, though the rate of deterioration has started to flatten, suggesting selling exhaustion may be near. Funding rates on perpetual swaps turned negative across major exchanges, a condition that historically precedes short squeezes when prices reverse.

Strategy, formerly MicroStrategy, sold 32 BTC in a recent auction — its first token sale since 2022 — before repurchasing 810 tokens days later, according to company filings. The move may have been a calculated effort to lower its cost basis rather than a signal of weakening conviction, analysts said. The company now holds approximately 499,000 BTC worth roughly $30 billion at current prices.

On-Chain Data Points to Potential Reversal

Despite the bearish price action, several on-chain indicators are flashing contrarian signals. Bitcoin's weekly Relative Strength Index dropped below 30 in late May, a reading that has preceded strong gains in 66% of historical instances, according to Glassnode data. The CME Bitcoin futures chart is also mirroring the post-FTX bottom structure from late 2022, with a bullish divergence forming between price and the RSI on the weekly timeframe.

"The combination of heavy long liquidations, extreme futures positioning, and deeply negative spot flows suggests the market may be approaching conditions where a relief bounce becomes increasingly likely," analyst Kaz said on X.

The $60,000 support zone now represents the most consequential level for Bitcoin's near-term trajectory. A successful hold would strengthen the comparison to the 2022 cycle bottom, while a breakdown would open the door to a retest of $55,000 or lower before any sustained recovery can begin. The next major macro catalyst is the U.S. Consumer Price Index release on June 12, which could determine whether risk assets find relief or face further pressure.

This article is for informational purposes only and does not constitute investment advice.