Bitcoin experienced a sharp decline, moving closer to the $63,000 mark, following the release of robust U.S. employment figures. The data reinforced the Federal Reserve’s hawkish outlook, diminishing hopes for imminent interest rate cuts and prompting a sell-off in risk assets.
The U.S. Department of Labor reported that initial jobless claims dropped to 226,000 for the week ending June 13, down from a revised 230,000 the previous week. This stronger-than-expected labor market data came just a day after the Fed held rates steady at 3.50%-3.75% during its June 17 FOMC meeting, marking the fourth consecutive pause. Policymakers also signaled the possibility of further tightening in 2026, which led traders to reduce their exposure to cryptocurrencies and other risk-sensitive investments.
The decline in Bitcoin was further exacerbated by technical factors. The cryptocurrency broke below an ascending channel pattern on the 4-hour chart, which had previously guided prices higher since early June. This breakdown occurred near the 61.8% Fibonacci retracement level at $64,950, a key support zone that failed to hold. The next significant support is around $62,400, corresponding to the 78.6% Fibonacci level. If Bitcoin fails to hold this level, analysts warn of a potential retest of June lows near $59,000.
Momentum indicators have turned bearish. The Relative Strength Index (RSI) on the 4-hour chart dropped to 38, indicating weakness, while the Moving Average Convergence Divergence (MACD) showed a bearish crossover. On the daily chart, Bitcoin formed a bearish flag pattern after its rebound from $59,175 stalled below the $67,000-$68,000 resistance zone. The Chaikin Money Flow (CMF) remains negative at -0.12, suggesting capital outflows persist.
Liquidation data reveals a concentration of leveraged long positions between $63,000 and $63,500, with additional liquidity near $61,000 and $62,000. This setup could lead to increased volatility as traders unwind positions. Crypto analyst Altcoin Sherpa commented that Bitcoin could dip back to the $60,000 region if current support fails, while analyst Michael van de Poppe noted the $62,400 level is pivotal for determining the next directional move.
For bulls to regain control, Bitcoin must reclaim the broken channel support and rise above the $64,950-$66,700 area. Until then, the market remains cautious as traders digest the implications of a hawkish Fed and resilient labor market.