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- Bitcoin has been stuck around $66,000 for the past five days, with data showing that investors are getting jittery, even as BTC investment products lose over $600 million in outflows.
- Analysts say that BTC could retest $60,000, and a breach would lead to a drop to $48,000, but a resurgence in altcoin momentum could bail the top crypto out.
Since it surged past $70,000 ten days ago, Bitcoin has lost its momentum, and in the past week, it has been stuck at around $66,000. Analysts worry that the top crypto could retest its support at around $60,000, with market data revealing that investors are on edge and considering taking profits for fear that it could dip further.
BTC trades at $65,700 at press time, shedding 1.45% in the past day, setting an intra-day high at $66,852. Trading volume rebounded after the weekend slump, shooting up 58% to $20.1 billion.
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Since dipping below $67,000 on Wednesday, the top crypto has been unable to gather momentum to break past this resistance. Over the weekend, it dipped to $65,100, its lowest price since early May.
As happens every time Bitcoin dips, mentions of “selling” and “taking profit” have spiked over the past week, data from Santiment shows. However, the market intelligence platform says, “…a temporary bounce and buy opportunity may form if we see continued FUD & panic from small traders.”
😨 The crowd is showing fear after Bitcoin has fallen to $65K, its lowest market value since May 16th. Spikes in mentions of #selling or #takingprofit are common after a drop, and a temporary bounce and buy opportunity may form if we see continued FUD & panic from small traders. pic.twitter.com/KwMjGogz4x
— Santiment (@santimentfeed) June 14, 2024
Julio Moreno, the head of research at on-chain analytics provider Crypto Quant, further revealed that BTC is hovering around a critical level—the traders’ realized price. This level, illustrated by the pink line on the graph below, traditionally acts as a support for the crypto (marked in green circles). If the coin dips below this level, it usually dips 8-12%, and in this case, it would suppress BTC to $60,000, the analyst says.
Further heaping pressure on Bitcoin is spent output age bands, Crypto Quant says. This metric assesses the length of time that any spent BTC was held by the sender. Over the past week, 40% of the sent BTC was held between three and six months, while 20% was in the six to twelve-month range.
“These sent $BTC will create selling pressure,” Crypto Quant says.
These factors are compounded by a capital flight from Bitcoin space over the past week. According to CoinShares’ data, institutional investment dipped by $621 million last week, the highest weekly outflow since March. GBTC, the Grayscale Bitcoin spot ETF, lost a staggering $273 million last week. Ark and Fidelity each lost around $150 million. While most altcoin funds saw net inflows, the major Bitcoin funds lost more than could be compensated.
Despite the bearish week, some analysts have brushed it off as normal market turbulence. One, known as Jelle to his 87,000 X followers, wrote:
Sideways price action is – generally speaking – not a bad thing. A lack of patience is. Pretty sure this will resolve up, just like all the other times.
He believes this is just like any other consolidation phase, which historically sets Bitcoin up for massive gains.
