Bitcoin slipped below the $60,000 mark on Wednesday for the first time since June 10, extending recent losses and reaching a two-week low. Despite the decline, several market analysts believe the leading cryptocurrency could be preparing for a relief rally that may push prices back toward $70,000.
The price drop came as traders pointed to increasing short positions and elevated funding rates, factors that had raised the likelihood of a sharp downward move before a potential recovery.
According to market observers, Bitcoin continues to trade within a broader range, with the $60,000 level remaining a critical support zone.
Several traders expect a rebound once selling pressure eases. Market analyst Killa suggested that Bitcoin may soon begin a short-term recovery, maintaining that the overall market structure remains range-bound until proven otherwise.
Another prominent trader, RektProof, echoed a similar view, predicting that Bitcoin could continue consolidating around current levels before moving higher toward the $70,000 region.
If realized, such a move would represent a gain of approximately 15 percent from current price levels.
Despite progress in diplomatic relations between United States and Iran, broader financial markets showed only a muted response.
US President Donald Trump highlighted continued cooperation regarding shipping through the Strait of Hormuz, stating that vessels would face no tolls or additional charges while passing through the critical energy corridor.
However, investor sentiment remained cautious.
At the time, the S&P 500 was modestly higher, while the Nasdaq Composite traded near flat levels, indicating that the easing geopolitical tensions had not significantly boosted risk appetite.
Market participants are also closely monitoring upcoming economic data and corporate earnings announcements.
Investors are awaiting guidance from Micron Technology as well as the release of the Personal Consumption Expenditures (PCE) Index, one of the Federal Reserve’s preferred inflation indicators.
These events could influence expectations for future interest rate decisions and, in turn, affect both traditional financial markets and cryptocurrencies.
While Bitcoin remains under pressure after falling below $60,000, many traders continue to view the current decline as part of a broader consolidation phase rather than the start of a deeper bearish trend.
A successful defense of key support levels could pave the way for a rebound toward $70,000 in the coming weeks, though upcoming macroeconomic developments are likely to remain a major driver of market direction.
