Bitcoin Price Analysis: Following a two-week correction, the Bitcoin price now stabilizes above the psychological level of $60000. The consolidation market short-bodied candle has eased the selling pressure in the altcoin market but signs of reversal are yet to develop. Furthermore, the major contributor to the downfall— Bitcoin miners’ capitulation and BTC ETF outflow has also witnessed a drop which could allow the buyers to form a sustainable bottom.
Also Read: Bitcoin Bull Run at Risk? Bloomberg Analyst Warns Of Dominance Reversal In Q2
Bitcoin Price Analysis: Large Bitcoin Accumulations Amid Market Fear
Amid the recent market correction, the Bitcoin price witnessed a notable downswing from $72000 to $60919, registering a 15.35% loss. The falling price faced renewed pressure at the $60000 level shifting the BTC trajectory sideways.
The daily chart producing alternative green and red candles indicates no clear initiation from buyers to sellers to lead this asset. Amid the consolidation, Bitcoin’s Fear and Greed index dropped to 30% suggesting that investors are feeling fearful of the current market movement.
While this fear could lead to a prolonged correction in the near term, several analysts often view it as a buying opportunity, as less confident investors exit the market in such scenarios, paving the way for more experienced investors to enter.
Moreover, the renowned trader Alicharts recently highlighted a significant accumulation of Bitcoin, signaling a potential shift in market sentiment. As per the tweet, over 20,200 BTC, worth approximately $1.23 billion, were sent to accumulation addresses. This large-scale purchase occurred amid a dip in Bitcoin to $60,888 indicating an increasing confidence of market whales.
Someone bought the #Bitcoin dip! Over 20,200 $BTC, worth $1.23 billion, were sent to accumulation addresses… 👀 pic.twitter.com/FAyKK6UzDN
— Ali (@ali_charts) June 28, 2024
Also Read: Morgan Stanley Predicts Rate Cuts In September By Fed & ECB, Crypto Market Rally Ahead?
Furthermore, the daily chart shows the downfall as part of the development of a continuation pattern called the bull flag. If the selling pressure persists, the BTC price could plunge to $54000 and seek support from the lower trendline.
A potential rebound from the support trendline or breakout from the overhead ceiling will be a key buying signal for potential buyers. If the pattern holds true, the flag breakout could extend the Bitcoin price prediction target to $89150, followed by $135000.
In addition, the Head of Research at CryptoQuant Julio Moreno, has highlighted that Bitcoin miner capitulation has reached a 7.6% drawdown, similar to levels seen in December 2022 after the FTX collapse.
#Bitcoin miner capitulation has reached levels comparable to December 2022: 7.6% drawdown.
December 2022 marked the cycle bottom after the FTX colapse. pic.twitter.com/8A3p2XDvXW
— Julio Moreno (@jjcmoreno) June 28, 2024
This significant decline in mining activity often signals a market bottom, as it indicates weaker miners are exiting, potentially reducing sell pressure. Historically, such drawdowns have been followed by market recoveries.
Technical Indicator
EMAs: The BTC price above the 200-day Exponential Moving Average highlights the broader market sentiment remains bullish.
ADX: The high Average Directional Index value of 33% often indicates the current market momentum (bearish) could soon hit exhaustion and bolster price reversal.
Frequently Asked Questions (FAQs)
The Fear and Greed Index is a tool that measures the current sentiment in the cryptocurrency market by aggregating data from various sources, including market volatility, social media trends, surveys, and market dominance.
Miner capitulation occurs when mining becomes less profitable, and smaller or financially strained miners are forced to sell their holdings, leading to a sharp increase in Bitcoin supply on the market. This can drive the price down temporarily.
A bull flag pattern is a continuation pattern found in markets that are in a strong uptrend. It appears as a small rectangle or a downward-sloping channel following a sharp price increase (the flagpole), suggesting a consolidation period.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
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.
