June 3 Cryptocurrency Market Analysis

Today’s market experienced a sharp plunge, with a complete bloodbath across the board. BTC surged in volume and plummeted below 67,000, reaching a low of 66,432. The entire market saw long positions massively liquidated, panic sentiment fully ignited, and short sellers completely took control of the market in the short term. BTC is currently around $66,900, down 6.4% over 24 hours, falling from the 74,000 level with no resistance along the way, breaking through all short-term support levels with high volume; Ethereum also dropped 6.3%, now priced at $1,862, losing the critical 1,900 mark. Mainstream coins all suffered heavy declines, with SOL, Dogecoin, and XRP generally falling 7%-10%, leading to a widespread collapse of altcoins.
In the past 24 hours, a total of 278k traders have been liquidated across the network, with total liquidations reaching $1.78 billion. Long positions account for over 90% of the liquidations. Chain reactions of forced liquidations further pushed prices down, and the fear and greed index dropped to 10, entering extreme fear territory. On the news front, MicroStrategy’s first reduction of BTC holdings in years triggered panic among institutional investors. U.S. spot ETFs have experienced 11 consecutive days of net outflows, totaling over $3.45 billion. Coupled with rising expectations of Federal Reserve rate hikes, escalating Middle East geopolitical conflicts, and U.S. sanctions on Iranian crypto platforms, multiple negative factors resonated to drive prices down.
From a technical perspective, BTC’s daily chart broke downward, with the 4-hour chart showing oversold conditions. Short-term resistance levels are at 68,400-69,000, with strong resistance at 70,200-70,800; short-term support is at 66,200, with a break below targeting 64,500-63,800. ETH’s resistance is at 1,920-1,960, with support at 1,820-1,790. The short-term oversold condition may lead to a slight technical rebound, but the overall trend remains weak. It’s advisable to follow the trend for rebounds and avoid blindly holding large positions for bottom fishing. Position sizes and stop-losses should be strictly controlled.
⚠️Risk reminder: Cryptocurrency markets are highly volatile. The above analysis is for informational purposes only and does not constitute investment advice. $BTC