As a researcher with extensive experience in analyzing cryptocurrency markets, I believe that the recent Bitcoin price correction to around $65,500 levels may not be over yet. The on-chain data suggests that there is still some froth in the market that needs to be cleared before we can see a decisive trend reversal on the upside.
As an analyst, I’ve observed that Bitcoin has experienced persistent selling pressure for the past two weeks, causing its price to hover around the $65,500 mark currently. However, based on my assessment of on-chain data, it seems that the Bitcoin correction may not have run its course just yet. It is possible that we might not witness a significant upward trend reversal until the price dips below the $60,000 threshold.
Bitcoin Price Drop to $60,000 Much Likely
According to Julio Moreno, the Head of Research at CryptoQuant, Bitcoin’s price has dropped below its short-term support levels based on the cryptocurrency’s on-chain realized price. As a consequence, Moreno cautions that Bitcoin’s price may potentially decrease further, approaching the $60,000 mark.
As an analyst, I’d like to emphasize that certain crucial factors driving demand, namely the actions of significant traders and investors, the attention of US investors, and the stability of liquidity in the realm of stablecoins, have yet to gain considerable traction.
Crypto analyst Rekt Capital pointed out that Bitcoin’s price often gathers around specific price levels at resistance near $71,600. Over the course of time, these price clusters result in a decline to support areas around $60,600.
Bitcoin expert Willy Woo points out that there is significant ongoing interest in Bitcoin futures contracts, as indicated by the yellow chart showing a z-score oscillator below. This oscillator underscores the importance of these bets in their current market context. According to Woo, a sizeable number of liquidations would be necessary before Bitcoin can continue its upward trend.
Several signs from Bitcoin’s blockchain indicate that there may be excess price bubbles that need to be addressed before a strong upward trend can commence.
Bitcoin Miners Selling
According to a recent report by CoinGape, I’ve found that Bitcoin miners have been offloading large quantities of their holdings, particularly following the halving event in April. The reason behind this mass selling appears to be covering operational costs. Interestingly, as per the CEO of CryptoQuant, Ki Young Ju, these miners have managed to reap a profit of approximately $550 million within the Bitcoin price range of $62,000-$70,000 in 2021.
As an analyst, I’ve noticed some significant trends in the Bitcoin market over the past two weeks. Large investors, or “whales,” have sold a staggering $1.2 billion in Bitcoin through brokers. Meanwhile, outflows from Bitcoin Exchange-Traded Funds (ETFs) reached a whopping $460 million during the same timeframe.
#Bitcoin long-term holder whales sold $1.2B in the past 2 weeks, likely through brokers.
ETF netflows are negative with $460M outflows in the same period.
If approximately $1.6 billion worth of sell-side liquidity isn’t absorbed through over-the-counter (OTC) transactions, brokers could transfer bitcoin (BTC) equivalents to cryptocurrency exchanges instead, potentially influencing market conditions.
— Ki Young Ju (@ki_young_ju) June 18, 2024
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2024-06-19 10:48