Bitcoin’s price dropped below $60,000 after a bullish sentiment led to heavy long contracts on dYdX. Historically, such contracts often result in price drops, causing a 7.5% decline over 48 hours.
Additional macroeconomic factors, such as Powell's speech highlighting labor market weaknesses, contribute to a cautious outlook. Investors await the release of Personal Consumption Expenditures (PCE) data, which is expected to rise from 2.6% to 2.7%.
Despite the short-term bearishness, the Net Unrealized Profit/Loss (NUPL) indicator shows that investors remain optimistic. NUPL measures unrealized profits and losses, suggesting that the market sentiment is still cautiously positive.
Bitcoin's price, in a downtrend since mid-March, has validated a bullish descending wedge pattern, indicating a possible 22% rise upon breakout. This could lead to a new all-time high beyond $73,800.
If Bitcoin can flip $65,000 into support, it might rise towards $67,100, potentially invalidating the bearish-neutral outlook and leading to recovery.
