Bitcoin Recovers amid Major Withdrawals; Market Observers Predict Potential Downturn
Summary:
Bitcoin (BTC) steadies around $67,500 following a major withdrawal from crypto exchanges, and a fall to $66,000 the previous day. This activity relates to patterns seen before Federal Reserve interest rate meetings. Amid signs of stabilization, traders recognize classic BTC price behavior. However, some market observers perceive potential continued decline towards $60,000. It is noted how Bitcoin's price cycle is following historical patterns, without an expected breakout this early in the post-halving period. Concurrently, on-chain data reveals continuous BTC withdrawals from exchanges, particularly Coinbase, leading to the lowest overall exchange balances in seven years.
Bitcoin (BTC) hovered around the $67,500 mark again on June 12, following a widespread digital currency rout that triggered significant withdrawals from exchanges. Graphs of BTC/USD’s hourly rate showed a stabilization in Bitcoin’s price trends while the markets prepared for macroeconomic activities in the US. After a sudden drop to $66,000 the previous day, Bitcoin triggered large-scale liquidations exceeding $50 million, according to CoinGlass data. This pattern is consistent with those previously observed before Federal Reserve interest rate meetings, with the latest scheduled to occur along with the May Consumer Price Index (CPI) release. A number of market traders noted the usual Bitcoin price pattern, especially with BTC/USD positioned at crucial resistance just below the all-time high. As some observers have noted, there is potential for the downturn to persist towards $60,000 unless market bid dynamics shift. As of press time, CoinGlass data indicated a buildup of liquidity around $65,700, with $67,700 being the next significant obstacle for upward progress. A widely followed trader and analyst noted that the present Bitcoin price trend was following historical patterns. Despite some expectation for a breakout, this did not occur this early in the post-halving period. Meanwhile, on-chain data showed continuous withdrawals from exchanges, particularly Coinbase, the largest US-based exchange. The total BTC balance on Coinbase Pro reduced by 14,420 BTC ($972 million) in the past 24 hours, suggesting a decline in the overall exchange balance. Over the last 30 days, Coinbase's BTC balance has reduced by over 38,000, bringing total exchange balances to their lowest levels in seven years. Glassnode, an on-chain analytics platform, reported a net transfer volume of 17,967 BTC ($1.21 billion) from exchanges on June 11. Please note that this article does not offer investment or trading advice. Every investment and trade carries risk, and readers are advised to conduct independent research before making any decisions.
Published At
6/12/2024 11:53:22 AM
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