Bitcoin has been facing constant selling pressure over the last two weeks and now taking a rest around $65,500 levels. However, on-chain data suggests that the Bitcoin price correction might not be over yet and it may not be until $60,000 that the BTC price sees a trend reversal on the upside.
Bitcoin Price Drop to $60,000 Much Likely
Julio Moreno, Head of Research at CryptoQuant, stated that the Bitcoin price has fallen below its short-term support levels, as per the crypto’s on-chain realized price. Thus, he suggested that the BTC price could face a further decline to $60,000.
The analyst further highlighted the key demand dynamics, such as buying by large traders and investors, interest from US investors, and stablecoin liquidity, are currently lacking momentum.
Another crypto analyst Rekt Capital stated that the BTC price tends to form clusters of price action near the Range High resistance around $71,600. Over time, this leads to a price retracement to the downside thereby resulting in clusters of price action near the Range Low support area of around $60,600.
Bitcoin analyst Willy Woo states that there’s still a huge open interest in the Bitcoin futures bets, as per the solid yellow chart below, representing a z-score oscillator. This oscillator highlights the local significance of these bets. Woo stated that a substantial amount of liquidations would be essential before Bitcoin can resume its bullish journey on the upside.
Thus, several on-chain indicators suggest that there’s still some froth in the Bitcoin price which needs to be cleared before we begin a decisive rally to the upside.
Bitcoin Miners Selling
As reported by CoinGape, the Bitcoin miners have been selling in huge numbers, especially after the Bitcoin halving event in April, in order to cover the operational costs. As per CryptoQuant CEO Ki Young Ju, the miners have realized $550 million in profits this year in the Bitcoin price range of $62,000-$70,000.
At the same time, the long-term whales have sold $1.2 billion worth of BTC in the last two weeks, through brokers. During the same period, the Bitcoin ETF outflows have skyrocketed to the tune of $460 million. Ju warned that if the $1.6 billion sell-side liquidity isn’t absorbed over-the-counter, brokers could start depositing Bitcoins to exchanges, leading to further downside.
#Bitcoin long-term holder whales sold $1.2B in the past 2 weeks, likely through brokers.
ETF netflows are negative with $460M outflows in the same period.
If this ~$1.6B in sell-side liquidity isn’t bought OTC, brokers may deposit $BTC to exchanges, impacting the market. pic.twitter.com/oYeKsRqKeF
— Ki Young Ju (@ki_young_ju) June 18, 2024
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