Traders eye $60K support as six consecutive red candles signal potential reversal
Bitcoin extended losses toward its $60,000 support level on Friday as sellers remained active but early technical signals suggested exhaustion, according to traders monitoring the price action.
BTC price downside reached $60.3K on June 5, marking a 5% daily decline from TradingView data. The sell-off extended across six consecutive red daily candles, erasing gains from the April and May rally. Daan Crypto Trades noted the pattern in real time: “Rapidly approaching its February low at $60K. Now in its 6th red daily candle and down more than the entire April/May rally. Really was a case of stairs up elevator down which is something we often see in these larger bear trends. Eyes on that $60K area for now.”
The price action coincided with Wall Street’s Friday open, when macro headwinds intensified. US nonfarm payrolls data released in May showed the economy added 172,000 jobs, more than double the anticipated 85,000 figure. The stronger-than-expected labor report reduced near-term prospects for Federal Reserve interest rate cuts. CME Group FedWatch Tool data showed markets pricing in a rate hike before year-end.
April’s jobs number was also revised upward by 64,000, marking the second strongest US jobs report in 13 months, according to The Kobeissi Letter. Mosaic Asset Company highlighted the policy tension: “If the payrolls report for the month of May confirms underlying strength in the economy and labor market, the outlook for monetary policy will grow more uncertain given the recent jump in consumer and producer inflation.”
Despite the bearish price action, commentators identified cracks in selling momentum. Expitump observed early technical divergences: “Price is still under controlled selling, but seeing funding getting almost into negative and coinbase discount decreasing. Early signs of seller exhaustion.” Traders monitor Coinbase Premium, the price difference between Coinbase BTC/USD and Binance BTC/USDT, as a key gauge of US demand strength.
Trader Morin cautioned that sellers maintained structural control. “Swept 61.3k internal low but failed to make higher high. Consistent lower highs -> Sellers in Control. Wouldn’t be surprised to see 60s traded or even ran through.” The $60K level now represents the critical floor Bitcoin must defend to avoid deeper losses.
