In June, Bitcoin miners offloaded over 30,000 BTC, equivalent to approximately $2 billion. This marks the highest monthly sell-off recorded this year. Moreover, this substantial liquidation has driven miner reserves down to a 14-year low of 1.9 million BTC as miners initiated selloffs to stay afloat after the recent Bitcoin Halving.
A Look At June’s Bitcoin Selloff
The fourth Bitcoin Halving event in April 2024, which slashed block rewards from 6.25 BTC to 3.125 BTC, has significantly impacted miner profitability. This prompted especially smaller operations to liquidate their holdings to cover operational costs. Moreover, the Bitcoin price is currently much lower than the $80,000 juncture, which is the breakeven point for miners.
This trend is echoed by recent large-scale sales from Bitcoin whales, who have unloaded over $4 billion worth of BTC. Furthermore, the German government recently divested $3 billion from its Bitcoin reserves. Adding to the market’s volatility, the price of Bitcoin has dipped below $61,000.
This decline follows the announcement by Mt. Gox regarding the repayment of $9 billion in Bitcoin and Bitcoin Cash (BCH) to creditors, further unsettling the market. However, crypto analyst Ali Martinez has highlighted historical trends to suggest a potential rebound.
He noted on X (formerly Twitter), “In the past two years, the #Bitcoin daily RSI has hit oversold territory three times, resulting in $BTC price surges of 60%, 63%, and 198%, respectively. With #BTC now below $62,000 and the RSI in oversold territory again, it might be a prime opportunity to buy the dip!”
Meanwhile, another prominent analyst, known as The Wolf of All Streets, provided a detailed technical analysis in his daily newsletter. He pointed out that Bitcoin revisited range lows, nearing $60,000, a crucial support area for bulls. In addition, the analyst observed that the 50-day moving average (MA) was breached days ago, while the 200-day MA, currently around $57,000, is rising.
“If the range breaks, look for that area as support. Price has not been below the 200 MA since $28,000,” he stated. He emphasized the significance of the RSI reaching oversold territory, a first since August 2023, suggesting that the market might be nearing a bottom.
Also Read: Top 3 Reasons Why Analysts Believe It’s Time To Buy The Bitcoin Dip
Crypto Market This Week
This week’s market activity is poised to be critical for Bitcoin and altcoins, which are both experiencing significant selling pressure. In June, Bitcoin has declined by 15%, while top altcoins have seen drops ranging from 20% to 40%. Moreover, te upcoming expiration of over 104,000 BTC options, valued at $6.72 billion, on June 28 is adding to the tension.
The largest derivatives exchange, Deribit, reported a put-call ratio of 0.52 with a max pain point at $57,000. It indicates that Bitcoin’s price is likely to remain under pressure in the near term. Traders are also bracing for the release of key economic data later this week. This includes the U.S. GDP growth rate on Thursday, June 27. In addition the market is eagerly anticipating the Fed’s preferred inflation measure, the PCE inflation data, on Friday.
These events coincide with the significant options expiry, creating a volatile environment. Moreover, it could even push the Bitcoin price below $60,000, possibly testing the $57,000 support level.
Also Read: Reasons Why Bitcoin Price Suddenly Dropped Below $61k
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