Why Bitcoin’s Key Support Zone Could Define the Next Market Move
Bitcoin could revisit $55,000 as investors watch whether the key $60,000 support level holds, Matt Mena, senior crypto research strategist at 21Shares, said on June 5. 21Shares is one of the world’s leading issuers of crypto exchange-traded funds (ETFs). Mena said buying interest has repeatedly emerged around $60,000, making it a critical floor for BTC. If that support gives way, he said bitcoin would likely revisit $55,000.
The latest decline has pushed bitcoin into a more fragile sentiment zone. Mena said $55,000 now stands out because it aligns with bitcoin’s realized price, or average on-chain cost basis. That level has acted as support during major drawdowns, including the late-2018 crash, the March 2020 Covid crash, and the 2022 FTX collapse. Bitcoin also held that area through summer 2024.
The strategist said:
“With over 50% of BTC holders now at a loss, a level that has historically aligned with cycle bottoms, the $55K support level becomes the next crucial area to watch for a few reasons.”
Why $55K Has Become the Level Bitcoin Bulls Cannot Ignore
Bitcoin’s pressure also reflects renewed concern over Strategy (Nasdaq: MSTR) and Michael Saylor. Mena said the market long viewed Saylor’s BTC purchases as permanent capital. That assumption has now been challenged, weighing on sentiment. He noted that Strategy sold 704 BTC in December 2022 before repurchasing 810 BTC two days later and argued the latest selling concerns should be viewed in that context.
Macro conditions add another layer to the market test. The strategist said bitcoin is absorbing a stronger labor report while holding near $62,000 support. The U.S. economy added 172,000 jobs in May, above expectations of 85,000. Unemployment held at 4.3%, while April payrolls were revised higher by 64,000. That reduces near-term pressure on the Federal Reserve to cut rates. Yet Mena said bitcoin’s resilience shows underlying strength.
Nonetheless, he maintained:
“$100k remains our year-end target, and the need for a non-sovereign, censorship-resistant asset that can serve as a potential hedge against debasement is more important than ever.”
The 21Shares strategist said the path to $100,000 has moved to year-end as macro forces shape the next phase. He expects bitcoin to benefit if the Iran conflict resolves, energy prices cool, inflation fears fade, and the Fed regains room to cut. Those conditions could support a retest of higher resistance levels, especially if BTC holds current support despite jobs data and Saylor-related pressure.
