Bitcoin has fallen to $62,000, but selling pressure is easing: what is happening in the market
On June 19, the price of the first cryptocurrency corrected to the $62,000 mark, losing about 3% over the day. Ether also did not hold up, falling below $1,700. This decline occurred against the backdrop of renewed geopolitical tensions in the Middle East: US Vice President JD Vance postponed a trip to Switzerland related to signing an agreement with Iran, and Israel struck targets in southern Lebanon. Interestingly, despite this, oil prices continue to fall.
Liquidations and Capital Outflows
Over the past 24 hours, the volume of liquidations in the crypto market reached $460 million, with the majority coming from long positions. Additional pressure comes from continued outflows from spot Bitcoin ETFs: during the last trading session on June 18, investors withdrew $90 million. Negative dynamics in these funds have been observed since mid-May, with rare and insignificant inflows.
Fear Index at Rock Bottom
The Crypto Fear & Greed Index has plummeted to 14 points, signaling a state of "extreme fear." This is one of the lowest readings in recent months, which usually indicates a potential turning point, but the market is in no hurry to recover yet.
Analysis: Selling Pressure Eases
Despite the grim picture, CryptoQuant contributor Amr Taha highlighted an important signal: a synchronized decline in Bitcoin inflows to Binance and Coinbase from medium-sized investors (holding between 100 and 1,000 BTC). Inflows to these exchanges have fallen to levels seen in late February, and on Coinbase Prime, to the lows of early April. "When investors stop actively depositing coins on exchanges, it reduces potential selling pressure. This makes the latest decline more positive for Bitcoin's short-term prospects," the expert explained.
Technical analyst Axel Adler Jr., in turn, noted that Bitcoin is still holding a key support level around $58,000. However, he highlighted a more serious problem: the inflow of new investors has turned negative, amounting to about -$1.2 billion. "Bitcoin is currently in the hands of old investors and is not benefiting from new demand. The market is sustained by old capital, and without fresh money, sustainable growth is unlikely," the analyst warned.
My comment: The situation is twofold. On one hand, the weakening of inflows to exchanges is a classic bullish signal that could form a local bottom. On the other hand, the lack of new capital and geopolitical risks leave the market in fragile equilibrium. As long as Bitcoin holds $58,000, bulls have a chance for a rebound, but a full reversal requires a powerful catalyst, which we have not yet seen.