Over the weekend, Bitcoin [BTC] managed to bounce by 8.6% from $59.1k to $64.2k. After setting this local high on Sunday, the 7th of June, Bitcoin tested the same resistance zone around $64.2k the very next day.
The bulls didn’t have any luck pushing the price higher since then. There is a chance of a Bitcoin bounce, but traders and investors must remember that the higher timeframe bias remained firmly bearish.
After the sell-off up to Friday, the 5th of June, the initiative appeared to return to the buyers. Crypto analyst Axel Adler noted that the net taker volume saw an uptick over the weekend that helped push prices up toward $64k.
Yet, like the brief period of buying after the sell-off on the 24th of May, the current price bounce need not extend significantly higher.
The analyst also demonstrated that the Bitcoin realized profit/loss 7DMA has been negative for 22 consecutive days. Moreover, the metric did not reach levels close to historical bottoms of realized losses.
Together, these findings underlined the stress in the market and the capitulation phase underway, as sellers panicked and sold at losses.
The 4-hour chart showed a firmly bearish structure in place. The current bounce has not reached any of the key Fibonacci retracement levels, such as $66.8k or $71.2k.
Sellers were moving their holdings at a loss, and sentiment remained extremely bearish. A Bitcoin bounce beyond $70k does not appear likely right now, but it is a possibility traders have to be prepared for.
The more likely scenario is a bearish continuation from the overhead supply zone at $65k-$66k.
Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories.