Bitcoin briefly climbed above the $60,000 mark during early trading on Monday, driven by a relief rally after the United States and Iran reached an emergency agreement to de-escalate hostilities. The deal, which halted direct strikes and ensured free passage through the Strait of Hormuz, temporarily improved risk sentiment across global markets. However, the move quickly reversed as sellers stepped in, pushing the cryptocurrency back below the psychologically important level.
According to CoinGecko, Bitcoin was trading near $59,722 at press time, down 0.5% over the past 24 hours. The asset has fallen 6.5% over the past week and 18.7% over the past month, reflecting persistent bearish pressure.
Why $60,000 Is Now Resistance
The $60,000 level, which previously acted as support, has transformed into a major resistance zone. Long-term holders and institutional investors used the brief rally to reduce exposure, absorbing buying pressure before a breakout could gain traction. This shift underscores the market's cautious stance, as traders view any move above $60K as an opportunity to sell rather than accumulate.
Technical indicators reinforce this view. Bitcoin is trading below its 20-, 50-, 100-, and 200-day exponential moving averages, which sit near $62,734, $66,902, $70,542, and $76,514, respectively. These levels create multiple layers of overhead resistance, suggesting sellers remain in control of the broader trend. Volume Profile Visible Range data also identifies the mid-$60,000 region as the largest concentration of historical trading activity, meaning the $63,000 to $67,000 zone could present a significant hurdle if Bitcoin attempts another recovery.
Institutional Outflows and Liquidations Add Pressure
Institutional flows continue to weigh on the market. Spot Bitcoin exchange-traded funds have recorded over $7 billion in net outflows during the past two months, reversing much of the buying demand that supported previous highs. This trend reflects a shift in investor preference toward assets like artificial intelligence-related stocks, especially amid persistent inflation concerns.
Liquidation data from CoinGlass shows $147.4 million in crypto positions were liquidated over the past 12 hours, with $116.1 million in long positions versus $31.4 million in shorts. Bitcoin accounted for the largest share at $64.3 million, followed by Ethereum at $36.7 million. The concentration of long liquidations highlights the fragility of bullish bets in the current environment.
Macroeconomic factors are also playing a role. A 4.1% increase in the personal consumption expenditures price index has raised expectations that the Federal Reserve will keep interest rates elevated. Higher borrowing costs have encouraged capital rotation away from cryptocurrencies and into other risk assets.
Mixed Technical Signals
Despite the bearish backdrop, momentum indicators are showing early signs that selling pressure may be fading. The daily Bollinger Bands show Bitcoin trading near the lower band around $58,532, while the 14-day Relative Strength Index stands near 32.5—just above oversold territory. This suggests downside momentum has weakened, even though a trend reversal has not yet materialized.
Some analysts on X have pointed to a bullish RSI divergence similar to the one seen before Bitcoin's 2022 bear market bottom. Pseudonymous analyst Rod noted that the current market structure resembles that period, hinting at a potential bottoming process.
Liquidation heatmaps from CoinGlass reveal the largest concentration of leveraged positions just above $60,000, particularly between $60,200 and $60,400. Additional clusters extend toward $60,800 to $61,200, indicating that a sustained move higher could trigger short liquidations and strengthen bullish momentum. On the downside, support is building around $58,500 to $58,700, with smaller liquidity pockets near $59,000.
For now, Bitcoin remains trapped between these zones, and the price could continue moving sideways until a decisive breakout occurs. The $60,000 level remains the key battleground for bulls and bears alike.
This article is for informational purposes only and does not constitute financial advice.
