Market sentiment is "extremely negative", $60,000 may be BTC's short-term retracement level

Crypto markets were slightly negative on Friday, with Bitcoin falling below key support at $ 64,000 .

According to Bitpush data, BTC fluctuated in a narrow range between $64,300 and $65,017 during the overnight trading session , and then fell below $64,000, hitting an intraday low of $63,353.50 during the midday trading session of the U.S. stock market. As of press time, it has slightly rebounded and the latest trading price is $63,873, a 24-hour drop of nearly 2%.

Altcoins followed BTC in sideways trading. The top 200 tokens by market capitalization fell more than rose. In the past 24 hours, Fellaz (FLZ) led the gains, up 11.10%, followed by Ordinals (ORDI), up 3.14%, and ENS up 2.98%. Dogwifhat (WIF) led the decline, down 9.97%, followed by zkSync (ZK), down 7.82%, and Based Brett (BRETT), down 5.87%.

The current overall market value of cryptocurrencies is $2.34 trillion, and Bitcoin’s market share is 53.95%.

As for U.S. stocks, as of the close of the day, the Dow Jones Industrial Average initially closed up 0.04%, the S&P 500 fell 0.16%, and the Nasdaq fell 0.18%. Nvidia (NVDA.O) continued to fall 3.22%, and its market value fell back to $3.1 trillion, lower than Microsoft and Apple.

Sentiment is “extremely negative” , with short-term bearish target at $60,000

Secure Digital Markets analysts are watching the relationship between tech stocks and BTC.

“Bitcoin has recently deviated from the Nasdaq’s upward momentum, driven primarily by long-term holders and miners liquidating positions. In addition, growing concerns about the stagnant nature of ETF inflows have also contributed to this decoupling. The German government’s transfer of $425 million worth of BTC (likely for sale) has further weighed on the market,” they wrote in the report.

Outflows from U.S.-listed spot bitcoin exchange-traded funds (ETFs) have reached their highest level since late April, with $900 million flowing out of these products so far this week, approaching the total net outflow of $1.2 billion in the April 24-May 2 trading sessions.

The lackluster price action has hit trader sentiment. BTC sentiment has now entered “extremely negative” territory for the fourth week in a row, according to an indicator tracked by analytics firm Santiment .

Santiment’s weighted sentiment index measures discussion of Bitcoin on X and compares the ratio of positive to negative comments and trading volume to gauge people’s overall feelings toward Bitcoin. As of Friday, the index had a reading of -0.73 and has been negative since May 23.

“BTC trader fatigue, combined with whale accumulation, typically leads to rallies that benefit the patient,” the firm said in a Friday X post.

Alex Kuptsikevich, senior market analyst at FxPro, said in a report: "A new round of strength in the US dollar and the gradual reduction in demand for risky assets have caused Bitcoin to fall from its intraday highs. Continued tests of lows such as the 50-day moving average have brought opportunities to bears, and their next target may be $60,000."

Continue to fall or breakout?

“If this is indeed our bottom, we should see a breakout in 24-48 hours at most,” crypto analyst CrediBULLCrypto wrote in a post on X.

“If we break out from here, we’ll find ourselves in ‘dream long’ territory, which, if successfully reached, is the moment when a full reversal is most likely,” he wrote.

“These charts are extremely similar to those from 2017, which suggests that big Bitcoin volatility and altcoin season are inevitable, but patience is key,” wrote trader and investor Mister Crypto. “Bitcoin season appears to be very close to bottoming, and altcoin season is about to begin.”

But analyst Rekt Capital sounded a note of caution Friday morning, saying BTC could fall further in the short term.

He wrote: “Yesterday, the lower resistance level was rejected strongly, which led to further declines today. Bitcoin is not ready to end the downtrend in June. But once Bitcoin is ready to reverse to the upside, this is still a downtrend line to watch for whether it is broken.”

It is worth noting that the current BTC price has only retreated less than 15% from the historical high of $73,000 set in March. Neil Roarty, an analyst at Stocklytics, said, "From the perspective of BTC bulls, this small pullback and consolidation period is expected and healthy before aiming at the $100,000 mark. Depending on how the situation breaks out, this may be a major turning point for Bitcoin."

Crypto options market data shows that traders maintain a long-term bullish outlook. On the Deribit platform, the strike prices of call options expiring in June are $65,000, $68,000 and $70,000, the strike price of call options expiring in July is $110,000, and the strike price of call options expiring in December is $95,000.