Bitcoin is currently facing a market correction, with recent daily charts showing reduced volatility, as highlighted by doji candles. The selling pressure has eased, halting the correction trend in altcoins. However, continuous outflows from US-listed ETF funds and significant miner sell-offs could push Bitcoin below $60,000.
The correction began in the second week after Bitcoin retraced from $72,000, dropping 10.7% to $64,275 and reducing its market cap to $1.267 trillion. In June, miners sold over 30,000 Bitcoins, valued at approximately $2 billion, following the Bitcoin halving event which reduced their profit margins and led to large reserve liquidations. This was the fastest selling rate in over a year, as reported by IntoTheBlock.
Despite this, daily chart analysis suggests that the correction is part of a horizontal trend within a flag formation. Key resistance and support trend lines are crucial for Bitcoin’s price movement. Notably, CryptoQuant’s Axel Adler Jr. points out that SOPR data for short-term holders fell below 1.0, indicating potential market bottom and reversal. This metric often signals the end of a correction and the start of a new upward trend, possibly pushing Bitcoin to $89,150 with a decisive breakout.
Key Takeaways for Crypto Investors:
Monitor Bitcoin’s price action around the $60,000 mark.
Consider miner selling trends and ETF outflows as significant indicators.
Watch for resistance breakouts as potential signals for upward trends.
Investors should stay informed and cautious, ready to capitalize on potential rebounds.