BTC Tests Yearly Low as Liquidation Data Suggests Easing Selling Pressure

Bitcoin is trading near its yearly low of $59,000 after failing to break above key resistance levels. Traders are anticipating new lows for Bitcoin, but data suggests that selling pressure may be easing.

Liquidation data shows over $4 billion in leveraged positions concentrated near the $59,000 level, which could lead to a downside liquidity sweep before a potential recovery rally towards the $68,000 range. However, this setup also means that forced selling and liquidations may occur if Bitcoin drops below this level.

CryptoQuant analyst Amr Taha notes that exchange inflows from mid-sized investors have dropped to their lowest levels since April 4, indicating a reduction in potential selling pressure. This trend does not necessarily signal new demand, but it suggests that one source of near-term sell pressure has eased.

Trader LP cautions against becoming too bearish, pointing to a potential bottom forming around late June, while analyst Killa notes that Bitcoin could front-run the liquidity pool below $60,000 rather than fully sweeping it.