On June 18, 2024, Bitcoin’s price fell below $64,050, hitting a 35-day low due to bearish pressure. This came after a promising start to the month, with Bitcoin retesting the $71,900 mark on June 6. However, the release of overheated labor market data by US authorities on June 7 signaled unrelenting inflation, causing BTC to succumb to bearish pressure. The downtrend reached a record low unseen in over 30 days, dating back to May 15, sparking massive liquidations across the rest of the crypto markets. Looking at the TradingView chart, Bitcoin’s retraction towards $64,047 brings its monthly timeframe losses to 11%. However, over the last 48 hours, bullish traders have made frantic covering purchases to halt the downtrend. At the time of writing on June 19, Bitcoin’s price has managed to stage an instant rebound above the $65,000 mark. Despite retail traders exiting the market to ape into stock markets as the S&P 500 hit a new all-time high on June 19, a rare market data trend observed in the derivatives markets signals hopes for a more pronounced upside in the days ahead. The open interest chart shows that Bitcoin’s open interest stood at $37.65 billion on June 6, just before the price dip began. While BTC price has now retraced 11% since then, the open interest has only reduced by $3.51 billion, reflecting a 9% decline as it dropped to $34.14 billion at the time of writing on June 19. This suggests that traders are reluctant to close out their positions, indicating that there is still significant interest and engagement in the market despite the falling prices. This potentially highlights the strong conviction among Bitcoin traders that the current price dip is temporary, and they are holding onto their positions in anticipation of a rebound. If this scenario plays out, Bitcoin’s price could be set for a major breakout towards $70,000 when the market sentiment flips bullish again.
