Bitcoin’s rough stretch continued this week, with prices sliding further as hot inflation data hammered risk assets. But beneath the gloom, some technical signals suggest the selling may be approaching exhaustion.
Prices keep sliding
The downtrend resumed after a brief stabilization. The numbers tell the story.
Bitcoin opened at $61,672 on Wednesday, June 10, down 2.3% from the prior day, while Ethereum opened at $1,638, down 3.1%. That extended a slump that had taken Bitcoin below $60,000 the previous Friday for the first time since October 2024. Yahoo Finance
The broader context remains challenging. Bitcoin’s market cap sits around $1.33 trillion, well ahead of Ethereum’s roughly $233 billion.
The inflation connection
The latest leg down tracked the inflation news closely. Crypto fell alongside stocks.
The hot May CPI reading, which pushed inflation to a three-year high, reduced the odds of Federal Reserve rate cuts and sent investors fleeing riskier assets. While crypto advocates have long argued Bitcoin acts as an inflation hedge, the recent action tells a different story. Bitcoin does not move in lockstep with inflation readings or Fed policy like some traditional assets, but it tends to fare better when the US economy is strong and consumers feel comfortable taking on risk.
Oversold signals emerge
Here is where the picture gets more nuanced. Technical indicators suggest the selling may be overdone.
Bitcoin was trading around $61,194 on June 10 with a 14-day RSI of 35.12, signaling oversold conditions, while sitting below its 50-day and 200-day moving averages. Analysts projected Bitcoin would trade between $61,000 and $61,800 for the week, with a weekly close above $61,969 opening the door to $62,400, and a loss of $61,000 targeting $60,500.
An oversold reading does not guarantee a bounce, but it indicates that selling pressure has pushed prices to levels that sometimes precede a recovery.
Innovation continues
Beneath the price action, builders keep working. Privacy and confidential computing are gaining ground in crypto too.
Arcium, a confidential computing network, hit 1 million computations, while a project it powers broke into the top three on Solana by revenue. The development highlights growing interest in privacy-preserving technology within the blockchain world, echoing the broader push toward protecting data even while it is being used. TradingView
What to watch
The near-term direction likely hinges on macro forces rather than crypto-specific news. Inflation data and Fed signals loom largest.
For investors, the combination of oversold technicals and persistent macro pressure creates an uncertain setup. The selling may be approaching a bottom, but a sustained recovery likely requires the broader risk-off mood to ease. As always, crypto’s volatility cuts both ways, and caution remains warranted.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk.
