Bitcoin Rebounds from $59K, but Bears Still Control the Next Move

Bitcoin's recent rebound from $59,000 has raised hopes among traders, but the flagship cryptocurrency still faces significant challenges. The price briefly dropped to as low as $59,060 before recovering above $60,800 over the past 24 hours.

The decline retested a support area near $59,000 that helped spark Bitcoin's rebound earlier this month. However, sentiment remains fragile as traders weigh corporate financing developments, ETF outflows, and upcoming US economic data.

Strategy shares came under pressure after both its perpetual preferred stock (STRC) and common stock (MSTR) fell below the $100 level, fueling concerns that the company's aggressive Bitcoin buying pace could slow. Recent SEC filings showed Strategy bought just 520 BTC for about $35 million during the week ending June 21, its smallest weekly purchase in about 18 months.

Derivatives data showed more than $850 million in crypto long positions were liquidated over the past day, including more than $400 million tied to Bitcoin after the cryptocurrency lost the $60,000 level. The US dollar climbed to its strongest level against a basket of major currencies in 13 months after easing geopolitical tensions reduced inflation concerns.