As a researcher with extensive experience in cryptocurrency markets, I find the current Bitcoin price trend intriguing. The Doji candles on the daily chart suggest reduced volatility over the weekend, but the selling pressure from miners and U.S. listed ETFs could potentially push BTC below $60,000.
The Bitcoin price trend suggests a decrease in price fluctuations during the weekend, shown by Doji candles on the daily chart. The lessening selling force has halted the correction phase for altcoins, causing some to revisit their significant monthly support lines. Nevertheless, Bitcoin’s persistent outflows from U.S.-listed ETFs and miner surrender could lead to further price drops below $60,000.
Bitcoin Price: SOPR and Flag Pattern Hint at Potential Bullish Breakout
The downward correction in Bitcoin’s price, which began in the second week of January, saw the asset drop by nearly 11% from its peak at around $72,000. Consequently, the cryptocurrency is now trading at approximately $64,275. Meanwhile, the total market capitalization has decreased to roughly $1.267 trillion.
Since June, Bitcoin miners have offloaded more than 30,000 BTC, worth roughly $2 billion. This represents the quickest pace of sell-offs in over a year, as reported by crypto analytics firm IntoTheBlock. The intense selling follows the recent Bitcoin halving that squeezed miners’ profits, leading them to dump their reserves in larger quantities.
As a Bitcoin market analyst, I’ve noticed an intriguing trend: Bitcoin miners have offloaded over 30,000 BTC, equivalent to around $2 billion, since June. This pace is the fastest we’ve seen in more than a year. The primary reason for this sell-off appears to be the recent halving event, which has squeezed mining margins significantly.
— IntoTheBlock (@intotheblock) June 22, 2024
The decrease in earnings and the surge in operational expenses have put miners under significant financial strain, compelling them to sell some of their holdings to meet their costs.
As a crypto investor, I’ve been keeping a close eye on Bitcoin’s daily chart. Based on my analysis, this correction seems to be just another part of the sideways trend that has emerged from the flag pattern. The two trendlines, which act as dynamic resistance and support, play a significant role in shaping Bitcoin’s price movement.
If the trend continues, the current price action may represent a brief pause in the form of a sideways consolidation before the coin begins its next advance following a successful break above resistance.
As a researcher studying the crypto market, I’ve noticed an intriguing observation from CryptoQuant’s analysis by its author, Axel Adler Jr. He pointed out that the Spent Output Profit Ratio (SOPR) for short-term holders, calculated using a 90-day moving average, has dipped below the 1.0 mark. This finding could potentially indicate the end of the current market correction and the emergence of a new bullish trend.
As an analyst, I would interpret a drop in the Short-Term Holder SOPR (Spent Output Profit Ratio), which is below the 90-day simple moving average, as a potential sign that the current market correction may be coming to an end and a new bullish trend might emerge. This occurs when short-term holders realize their profits at a rate lower than the price they paid for their previous Bitcoin transactions.
More time is needed for this to occur.
— Axel Adler Jr (@AxelAdlerJr) June 23, 2024
As a crypto investor, I closely monitor the Spent Output Profit Ratio (SOPR) to gauge the profitability of my Bitcoin investments. When the SOPR drops below 1.0, it suggests that holders are selling at a loss. Historically, such occurrences have been associated with market bottoms and potential reversals. Therefore, keeping an eye on this indicator can provide valuable insights into the current state of the Bitcoin market.
As a crypto investor, I believe that the bullish trend will continue for Bitcoin (BTC). With this in mind, I anticipate that BTC will shatter the flag pattern with a powerful breakout. Should this breakout be successful, we can expect a recovery to reach $89,150, and then an extended rally could propel the price up to $135,000.
Technical Indicator
- EMAs: A bearish crossover between the 20 and 50-day Exponential Moving Average bolsters the prolonged correction in BTC.
Average Directional Index: An uptick in the daily ADX slope at 21% highlights the sellers strengthening their grip over this asset and continuing as the dominant force.
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2024-06-23 15:36