Bitcoin hits new June low...$60,000 drop raises concerns

▲ Bitcoin (BTC)

On Nov. 11, after Wall Street opened, Bitcoin (BTC) fell below $67,000, hitting its lowest price in June.

"Bitcoin's downtrend is often observed around the time of macroeconomic data releases in the U.S. and as the U.S. Federal Reserve (Fed) prepares to make its announcement," Cointelegraph explained, adding that "Bitcoin could potentially fall to $60,000."

Cryptocurrency trading veteran Michaël van de Poppe, founder and CEO of MN Trading, said: "If Bitcoin breaks $71,700, it will be a significant milestone. However, we typically see conservative price action around the release of key economic data, such as the U.S. Consumer Price Index (CPI)."

Popular trader Roman had his eye on the $67,000 support level for a while, but decided it was time to end his observations at that point.

Another trader, Castillo Trading, noted the demand zone that had formed around the $64,000 level: "We already knew that the price was going to drop to some extent. A breakout above $70,000 seemed unlikely. Now that the price has fallen, we are ready to observe further downside."

Open interest (OI) in the derivatives market also showed a cautionary tale. As of Nov. 11, open interest topped $37.6 billion, the highest level ever recorded in June. This is a classic Bitcoin price volatility warning sign.

Meanwhile, Singapore-based digital asset manager QCP Capital noted that "crypto markets have seen risk aversion ahead of the US CPI and Federal Open Market Committee (FOMC)," adding that "net outflows of $64 million from bitcoin spot exchange traded funds (ETFs) on Tuesday (local time) may have been a result of this risk aversion."