- Bitcoin price collapses almost 10% on Monday but recovers the entirety of that loss to close in the green.
- Evidence of dip-buying growing, relief rally likely.
- Downside risks remain, but a corrective move higher is beginning.
Bitcoin price action on Monday was mainly in a full-blown bear attack, with a new 2022 and six-month lows hit. That all changed near the end of the NY equity market session when buyers poured in to rally Bitcoin higher to close in the green for the second day in a row.
Bitcoin price finds buyers at new multi-month lows, bulls cautious despite a late-session rally
Bitcoin price action has leaned heavily on the bear side of late. Bitcoin dropped nearly 24% from last Monday's open, the most significant loss occurring on Friday with a massive 13% nosedive. Sunday's recovery was in question as sellers continued to push Bitcoin lower until denied by an influx of buying.
When Bitcoin price hit the 88.2% Fibonacci retracement, it immediately reversed Bitcoin's direction. From an oscillator perspective, Bitcoin is neutral in the Relative Strength Index but severely oversold in the Optex Band oscillator. This is the first time Bitcoin has hit the weekly oversold level in the Optex Bands oscillator since July 2021 – which preceded a move to new all-time highs.
Despite the greater than 50% drop from the all-time high, the losses suffered by Bitcoin price are still less than what was experienced between April and June 2021. Bitcoin is down 52% from its all-time high, but the April – June 2021 collapse put Bitcoin lower by nearly 56%.
BTC/USD Weekly Ichimoku Kinko Hyo Chart
Buyers must close Bitcoin at or above the $37,300 value area this week. If that does not happen, Bitcoin will enter into an Ideal Bearish Ichimoku Breakout setup – the most sought-after short setup in the Ichimoku Kinko Hyo system. Fulfilling the criteria for that short entry would be the first time since the Covid-crash in March 2020 and only the second time since May 2018.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks

Japan mulls lifting Bitcoin ETF ban, slashing taxes on crypto gains
Japan's Financial Services Agency has proposed a rule change to bring crypto assets under the jurisdiction of the Financial Instruments and Exchange Act. The proposal, to be reviewed on June 25, could pave the way for the listing of Bitcoin ETFs.

Bitcoin recovers as Iran-Israel ceasefire fuels risk-on sentiment
Bitcoin price stabilizes around $105,000 on Tuesday after a 4.33% gain on Monday, driven by easing geopolitical and regulatory concerns. Global risk appetite is increasing as the ceasefire between Iran and Israel, along with the Fed's softer stance on crypto-related banking, takes hold.

Crypto Today: Bitcoin, Ethereum, XRP consolidate gains after Israel-Iran ceasefire
Tensions in the Middle East have taken the backseat after US President Donald Trump announced a ceasefire between Israel and Iran on Monday. Global markets, including cryptocurrencies, ticked up, boosting BTC's recovery above $105,000 at the time of writing on Tuesday.

Pi Network Price Forecast: Minor recovery teases trend reversal amid GenAI claims, Pi2Day
Pi Network edges higher on Tuesday, holding above a crucial psychological and trendline support. The Pi Core team teases a potential Generative AI feature to be announced on Pi2Day, June 28.

Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.