Bitcoin Price Correction A large amount of negative pressure is being exerted on the price of Bitcoin (BTC). Amidst the adverse market conditions, Bitcoin is trading at approximately $64,000, remaining unchanged from its previous level. On the other hand, economists are concerned about the possibility of stupid money being introduced into the market and driving down the price of Bitcoin.
Bitcoin Supply Barrier and Selling Pressure
According to data from IntoTheBlock, approximately 45 million addresses have 3.03 million BTC, valued between $64,300 and $70,800. Therefore, an enormous concentration of Bitcoin at high prices forms a substantial supply barrier. This can make the downward pressure even more severe in the long run.
When markets are imperfect, these traders will likely sell their shares in a panic. Additionally, when the price of Bitcoin Blockchain dipped below $67,000, this tendency to sell was already visible. The week has also seen unusual activity from idle Bitcoin wallets. An on-chain researcher exposed six transactions totaling 25,000 BTC from a single Bitcoin wallet as the price of Bitcoin fell below $65,000. The market’s concern was already high before this move.
According to the Bitcoin Price Correction Spend Output Age Bands data, this wallet may prepare for a selloff if market sentiment becomes negative. The BTC in this wallet is between three and five years old. Moreover, the cryptocurrency market will be very volatile throughout the following week. Many people are selling their bitcoins and other cryptocurrencies.
In the last 30 days, altcoins have dropped 20-30%, while Bitcoin has had a 10% decline. The expiration date of 104,000 Bitcoin options, with a total value of $6.72 billion, is Friday, June 28, 2024. Expect selling pressure on the Bitcoin price to persist with a put-call ratio of 0.52 and a maximum pain point at $57,000.
Bitcoin Price What Next?
Additionally, traders will receive US GDP growth rate data on Thursday and Friday. , as well as the Fed’s recommended PCE inflation statistics. These coincide with BTC option expirations. Due to excess volatility, the price could fall below $60,000 or $57,000. Last week’s $ 500 billion Bitcoin ETF outflow fled the fire. The German government’s massive Bitcoin transfers to exchanges have also increased market supply.
Nevertheless, over 87% of Bitcoin holders are still making money, even though the price is decreasing. This could lead to further lower pricing as it suggests there is potential for additional profit-booking. Bitcoin price analysts predict consolidation could last until the summer of 2024 ends. Accordingly, we may see the start of a new bull run in the months leading up to the US elections in September.
Also, watch the May PCE price release next Friday. Core PCE declines to threaten the index. Even while individual salaries are rising, retail sales may slow this trend. Decreased Bitcoin exchange balances are good. Supply may be low since 107,000 BTC have left cryptocurrency exchanges in the past 30 days. Controlling Bitcoin supply by limiting production. Recent halving reduced block rewards to 3.125 BTC.
Fed Policy Triggers Bitcoin Selloff
Despite statistics showing that inflation is decreasing, the Federal Reserve adopted a hawkish posture on rate decreases earlier this month. As a result, miners and whales liquidated about $4 billion worth of Bitcoin, setting off a selloff. But if the Fed does decide to lower rates, some experts predict that Bitcoin might hit $100,000 by year’s end.
Famous cryptocurrency analyst Rekt Capital commented on X, “Strong rejection from this Lower High resistance yesterday to precede extra downside today.” I couldn’t agree more. The June slump in Bitcoin prices is far from over. However, this downtrend line should be monitored until the Bitcoin Price Correction is prepared to turn around and go up. Shortly, his research indicates that Bitcoin will continue to decline.
