Analysts Reveal Factors Behind Bitcoin's Plunge Below $60K

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

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Structural Breakdown: According to Bybit's report, Bitcoin plummeted from $73,760 to $59,130 in the week ending June 8, marking its worst single-week decline since the FTX collapse in 2022, indicating a structural breakdown that has shaken investor confidence.
Significant Oversold Signals: Ethereum's Relative Strength Index (RSI) fell to 12.78, a historic low, while Bitcoin's RSI dropped to 15.45, suggesting a market-wide capitulation event characterized by panic selling; although such oversold conditions often precede technical rebounds, a bottom confirmation is still lacking.
Increased Options Market Volatility: Following the confirmed technical breakdown, the Deribit Volatility Index (DVOL) surged from a historical low of 35 to around 55, reflecting heightened market uncertainty and fear, although it has since pulled back to 48, indicating that the initial shock is being absorbed.
Macroeconomic Impact: Strong U.S. jobs data has reignited rate hike fears, with analysts suggesting that every positive employment report negatively impacts risk assets, particularly in light of Strategy's sale of 32 BTC, which broke the “never sell” narrative and heightened market anxiety.

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Technical Analysis for ETH

Technical Sentiment Analysis for Ethereum (ETH). As of , Ethereum (ETH) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 1 indicators are flashing buy, while 4 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ETH stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, ETH is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Ethereum (ETH) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	1241.732	1373.706	1511.042	1643.016	1780.352	1912.326	2049.662
Fibonacci	1373.706	1476.582	1540.14	1643.016	1745.892	1809.45	1912.326

About ETH

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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