According to CryptoPotato, a pseudonymous cryptocurrency trader, Teddy, has suggested that Bitcoin's ongoing correction could be nearing its end. Teddy's analysis indicates that the market could see a rally in the coming weeks. If history repeats itself, the bottom for this correction could be around $61,000. Teddy explained that every correction experienced in this Bitcoin bull run has ended on the asset's 21 weekly Exponential Moving Average (EMA). The EMA is an indicator that tracks the price of an asset over time, placing more significance on the most recent data points. Teddy believes that Bitcoin could bottom at $61,000 soon. At the time of writing, Bitcoin was trading at $61,500 after briefly dipping below $61,000 to touch $60,900.
Despite the optimism, some factors suggest the market may be in for more downturns. Last week, CryptoQuant revealed a lack of bullish momentum in the crypto market, as seen in low stablecoin liquidity and weak Bitcoin demand growth from large investors. The crypto intelligence platform also disclosed that Bitcoin demand from whales was growing at a monthly rate of 4.8%, but traders were still decreasing their holdings. Stablecoin liquidity recorded its slowest pace since November 2023. Furthermore, U.S. Bitcoin and Ethereum investors, who are usually major driving forces during rallies, have had weak demand growth. The U.S. spot Bitcoin exchange-traded fund (ETF) market, which reflects the intensity of this demand, has experienced consistent outflows since June 13.
CryptoPotato also reported that Bitcoin could lose more of its value as miners have not capitulated yet. Bitcoin miners have continued to offload their assets as operational costs, hash rates, and pressures increase. Analysts expect weaker miners to 'die' and hashrate to recover before Bitcoin can resume its northward movement.