The Bitcoin (BTC) price is currently barely holding above the $66,000 mark after plunging to $65,000 last week. This downturn came after significant selloffs by Bitcoin whales and miners. On-chain analytics reveal that these selloffs amounted to over $4 billion. However, despite the gigantic dump, analysts remain optimistic about Bitcoin’s price trajectory.
Analysts Remain Optimistic Despite Selloff By Whales & Miners
On-chain data from Santiment shows that Bitcoin whales sold over 50,000 BTC in the ten days before the recent correction. This selloff totaled approximately $3.30 billion. Bitcoin whales are individuals or entities that hold large amounts of Bitcoin, often influencing market prices through their trades.
Additionally, Bitcoin miners contributed to the recent price correction by selling over 1,200 BTC. This amount is worth more than $79.20 million. Miners earn Bitcoin by verifying transactions and adding them to the blockchain. They often sell their rewards to cover operational costs.
Despite these selloffs, many analysts believe the bull market is not over. CryptoQuant CEO Ki Young Ju shared his views on X, formerly known as Twitter. He noted, “Bitcoin traders’ average entry price is $47K-ish. In a bull market, BTC price usually stays above the traders’ entry price. Even with a 27% drop, it can still be considered a bull market. Stay long-term bullish, but avoid excessive risks. This is financial advice.”
Ki Young Ju’s statement suggests that even if the Bitcoin price drops by 27% from its current level, the market can still be considered bullish. Hence, the recent 9% pullback from $71,500 is not significant enough to declare the end of the bull market. Moreover, he expects a continued bull market, which would drive the Bitcoin price higher.
Crypto analyst Ali Martinez pointed out that Bitcoin’s average mining cost is currently at $86,668. He explained, “Historically, BTC always surges above its average mining cost!” The increase in mining costs followed the fourth Halving event, where the block rewards were halved from 6.25 BTC to 3.125 BTC.
Halving events reduce the amount of new Bitcoin entering circulation, which can increase the price due to reduced supply. However, it also means miners earn less, prompting them to sell more of their rewards to cover expenses.
Also Read: ETH/BTC Price Prediction: When Is Ethereum Price Poised Reach $4,200?
What’s Next For Bitcoin Price?
Martinez believes that Bitcoin will soon surpass its average mining cost. When this happens, miners are likely to hold onto their reserves instead of selling them. This could reduce selling pressure and drive further price increases.
The recent selloff by whales and miners indicates short-term profit-taking and operational cost management. However, the overall sentiment among analysts remains positive. Once the Bitcoin price is higher than the average mining cost, an unprecedented surge is expected as miners will hold onto their reserves.
At press time, the BTC price down by 0.39% to $66,004.88 on Monday, June 17 with a market cap of $1.30 trillion. Whilst, the 24-hour trade volume for BTC surged 39.29% to $16.95 billion. Amid the sideways action, the long liquidations exceed shorts, leading to a downside pressure.
According to Coinglass, the Bitcoin long liquidations amounted to $5.89 million in the last 24 hours. Meanwhile, shorts liquidated $3.93 million worth of positions. As longs dominated, a slight drop was witnessed, however, the buying pressure from shorts limited the dip.
Also Read: 3 Reasons Why Bitcoin (BTC) May Retest $70,000 This Week
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
