Bitcoin (BTC) fell below $62,500 on Wednesday after a rejection near $64,500, putting the $61,200 support level back in focus ahead of key U.S. inflation data.
Key Points:
- Bitcoin failed to hold above $64,000 and broke below the $62,500 trend line support on the hourly chart.
- Major downside levels now sit at $61,200 and $60,200, with $58,500 seen as the last near-term floor.
- Wednesday's U.S. inflation report could decide whether the market stabilizes or extends its slide.
Bitcoin Price Breaks $62,500 Support
The decline began when buyers failed to clear the $64,500 resistance zone, undoing much of the bounce from last week's lows. Sellers then pushed the price beneath $63,500, and the hourly chart showed a break below a bullish trend line that had supported the market at $62,500. The drop also dragged the pair under the 100 hourly simple moving average, a marker short-term traders use to gauge direction.
The retreat has already erased more than half of the climb from the $59,070 swing low to the recent $64,613 high. Momentum tells a similar story, with the hourly MACD gaining pace in bearish territory and the RSI slipping below the neutral 50 mark.
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Analysts Watch CPI And $60,000 Support
Chart watchers now treat $61,200, the 61.8% Fibonacci retracement of the latest advance, as the first line of defense for the bulls. Below that sit $60,950 and the $60,200 zone, while a deeper flush could expose $59,000 and the $58,500 floor that has defined the recent range. On the upside, buyers need a close above $62,200 to reopen the road toward $64,000, with $66,000 and $66,500 standing as the larger hurdles beyond.
Macro risk compounds the technical damage, since the May consumer price report lands Wednesday and forecasters expect annual inflation to accelerate to 4.2% from 3.8%. Analyst CryptoBullet cautioned that Bitcoin has yet to fall below its realized price near the mid-$50,000s, a threshold that marked the final bottom in previous bear markets.
BNP Paribas now expects the Federal Reserve to begin raising rates in December, one more headwind for an asset class already starved of fresh inflows.
The slide extends a punishing stretch for the largest cryptocurrency. Bitcoin briefly recovered toward $62,500 earlier in the week after dipping below $60,000, yet it still trades roughly 40% beneath its all-time high. An early June plunge below $63,000, the first break of that level since late February, erased more than $1.1 billion in leveraged positions within a single day.
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