As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market volatility. June’s Bitcoin selloff, marked by over 30,000 BTC being offloaded, equivalent to approximately $2 billion, is a concerning development. This significant liquidation has driven miner reserves down to a 14-year low of 1.9 million BTC.
In June, Bitcoin miners sold off over 30,000 Bitcoins, which is equivalent to around $2 billion in value. This represents the largest monthly sell-off of Bitcoins by miners so far this year. As a result, miner reserves have dropped to a low of 1.9 million BTC, which is the smallest amount held by miners since the inception of Bitcoin 14 years ago. In order to stay financially viable after the recent Bitcoin Halving, miners initiated these sell-offs.
A Look At June’s Bitcoin Selloff
The Bitcoin Halving in April 2024 reduced block rewards from 6.25 Bitcoins to 3.125 Bitcoins during the fourth event, causing a substantial impact on miner profitability. Consequently, smaller mining operations were forced to sell their holdings to meet operational expenses. Additionally, the current Bitcoin price falls short of the $80,000 mark required for miners to break even.
The current trend in the Bitcoin market is reflected in substantial sales by major Bitcoin investors, who have disposed of approximately $4 billion in Bitcoin. Additionally, the German government has sold off around $3 billion worth of Bitcoin holdings. These events, along with the recent decline in Bitcoin’s price to below $61,000, contribute to the market instability.
The announcement by Mt. Gox about repaying $9 billion in Bitcoin and Bitcoin Cash to creditors caused unease in the market, leading to this recent decline. Yet, according to crypto analyst Ali Martinez, there are historical patterns indicating a possible market recovery.
I’ve observed on X (previously known as Twitter), “In the last two years, the daily Relative Strength Index (RSI) of Bitcoin has dipped into oversold territory three times. Following these occasions, Bitcoin’s price experienced significant rallies, amounting to a 60% increase, 63%, and an impressive 198%. Now that Bitcoin is trading below $62,000 and the RSI indicates oversold conditions once more, it could be a promising moment to consider buying the dip.”
As another notable market commentator, often referred to as “The Wolf of All Streets,” shared in his regular bulletin, Bitcoin dipped back towards key support levels close to $60,000. Notably, this region serves as a significant cushion for buyers. Furthermore, the 50-day moving average (MA) was surpassed several days prior, while the 200-day MA, now hovering near $57,000, is on an upward trend.
As an analyst, I would emphasize that if the price range is breached, keep an eye on that area as potential support. The 200-day moving average has not dipped below $28,000 since then. Moreover, the recent Relative Strength Index (RSI) reading, which indicates oversold conditions for the first time since August 2023, could be a sign that the market is approaching a bottom.
Crypto Market This Week
The coming week could hold crucial significance for Bitcoin and altcoins as they face substantial selling pressure. In the past month, Bitcoin has dropped by approximately 15%, while top altcoins have experienced declines ranging from 20% to 40%. Additionally, the upcoming expiration of over 104,000 BTC options, valued at around $6.72 billion, on June 28 is contributing to the market tension.
Deribit, the leading derivatives exchange, revealed a put-call ratio of 0.52 and a maximum “pain point” at $57,000 for Bitcoin. This signifies that Bitcoin’s price may continue experiencing downward pressure in the upcoming days. Traders are further preparing for significant economic data releases this week. Among these events is the U.S. GDP growth rate announcement on Thursday, June 27. Moreover, investors are highly anticipating the release of the Federal Reserve’s preferred inflation measure, PCE inflation data, on Friday.
The occurrence of these events aligns with crucial options expiration periods, leading to increased volatility in the Bitcoin market. There’s a likelihood that prices may dip beneath $60,000, potentially challenging the $57,000 price floor.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- USD PHP PREDICTION
- USD MYR PREDICTION
- DPLAT PREDICTION. DPLAT cryptocurrency
- NLS PREDICTION. NLS cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- Star Wars Outlaws: Minimum & Recommended PC Requirements
- BEL PREDICTION. BEL cryptocurrency
- WOO PREDICTION. WOO cryptocurrency
2024-06-24 18:12