Bitcoin (BTC), which has been struggling to recover its bullish momentum, is currently in a downward spiral.It is in a phase of consolidation just over the important $60,000 level. The largest cryptocurrency, despite reaching an all time high just three months earlier, saw a drop to $59,500 due to the increased pressure of miners.
BTC Selling Spree
It is still ongoing miner capitulationThe Bitcoin supply squeeze effect is the longest one observed, dating back to the summer 2022, before the FTX collapse.
Ali Martinez, a crypto analyst, noted that Bitcoin miners are stealing bitcoins. have sold In the last 3 days alone, more than 2300 BTC worth approximately $145,000,000 were traded.
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The recent increase in the price of coal is a result of this pressure on miners to sell. BTC sales by the US and German governmentsThis has contributed to the downward pressure on the market and kept prices in the lower end of the consolidation zone that ran between $60,000-$70,000 over the past few months.
In various transactions, it is notable that addresses associated with the German and US government have sent 737 millions worth of BTC, including to Coinbase Bitstamp and Kraken.
As well as the selling pressure As the initial demand from miners and governments subsides with time, observers on the market expect BTC to recover in price, following the usual pattern that was observed after the Halving Period, during which new record highs for BTC were achieved.
Bitcoin Price Outlook
Market expert Scott Melker points out This could indicate that the market is nearing an important signal. For example, the closing of a daily candle below $60,300 would lead to bullish divergence.
It would be similar to the last time the price of the stock was about $26,000 in August, when the RSI (Relative Strength Index), the daily RSI indicator moved out from oversold territory.
Melker stresses the importance of a closing below the level mentioned, followed by a clearly upward movement in the RSI. lower low. The RSI would have to move significantly lower in order for it to be below its previous level of June 24th.
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Crypto analyst Andrew Kang, however, highlights the importance of a possible loss of the 4-month range for Bitcoin. He draws parallels to the range seen in May 2021, following the parabolic rise of BTC.
Kang notes The fact that more than $50 billion is being leveraged in the crypto market at the moment, combined with the 18-week long period of consolidation without any extreme washing outs like the one seen in the bull run from 2020-2021, makes it a very interesting time to be in the cryptocurrency market.
Kang also suggests that the initial estimates in the low $50,000s were likely too conservative and could have been a significant reset at the $40,000s.
A pullback of this magnitude would have a significant impact on the market. It may take several months for the price to move in a downward or choppy direction before an upward trend can be established.
BTC is currently trading at $60,350, after briefly dipping below this important support level.
In a monthly price frame, the largest cryptocurrency on the market is recording a 12 percent decrease.
Chart from TradingView.com, image courtesy of DALL-E
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Source: www.newsbtc.com
