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 currently trading at approximately $64,000, maintaining 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.
BTC vs. Dumb Money
Approximately 5.45 million addresses have 3.03 million BTC, valued between $64,300 and $70,800, according to data from IntoTheBlock. Therefore, a substantial supply barrier is formed by the enormous concentration of Bitcoin at high prices. These Bitcoin holders or “dumb money” traders may decide to liquidate their holdings if the price of Bitcoin keeps falling. In the long run, this can make the downward pressure even more severe.
In this context, “dumb money” means retail investors who are more influenced by their emotions than by objective market data. When markets are imperfect, these traders are likely to sell their shares in a panic. Additionally, when the price of Bitcoin dipped below $67,000, this tendency to sell was already visible. The week has also seen unusual activity from Bitcoin wallets that have been idle. 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 be preparing 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 seen drops of 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. They’ll get 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. The $500 million Bitcoin ETF outflow last week fuels 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 still going down. This could lead to further lower pricing as it suggests there is potential for additional profit-booking. Bitcoin price analysts predict that 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 be slowing this trend. Decreased Bitcoin exchange balances are good. Since 107,000 BTC have left cryptocurrency exchanges in the past 30 days, supply may be low. Controlling Bitcoin supply by limiting production. Recent halving reduced block rewards to 3.125 BTC.
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, until Bitcoin Price Correction is prepared to turn around and go up, this downtrend line should be monitored. In the near future, his research indicates that Bitcoin will continue to decline.
Also Read: Bitcoin Blockchain: Unveiling the Technology Behind Bitcoin
