Bitcoin‘s daily chart indicates a period of reduced volatility over the weekend, marked by doji candles. This easing in selling pressure has paused the correction trend in altcoins, leading many to revisit key monthly support levels. However, continuous outflows from US-listed ETF funds and miner capitulation could potentially drive Bitcoin’s value below $60,000.
What’s Happening on the Bitcoin Front?
Bitcoin’s current correction trend started in the second week after its price pulled back from $72,000. The downward movement led the asset to trade at $64,275, reflecting a 10.7% decline, while the market cap dropped to $1.267 trillion.
According to blockchain analysis firm IntoTheBlock, Bitcoin miners sold over 30,000 Bitcoins in June, amounting to roughly $2 billion—the fastest selling rate seen in over a year. This significant liquidation occurred following the recent Bitcoin halving event, which squeezed miners’ profit margins and prompted substantial reserve sales.
Notable Prediction for Bitcoin
Despite the ongoing correction, daily chart analysis shows Bitcoin within a horizontal trend, forming a flag pattern. The price movement is influenced by two trend lines acting as dynamic resistance and support.
Blockchain data analysis platform CryptoQuant writer Axel Adler Jr. pointed out that the SOPR data for short-term holders fell below 1.0 based on the 90-day moving average, hinting at a possible market bottom and the start of a new upward trend.
Key Insights for Investors
Investors can derive the following actionable insights:
- Monitor SOPR data, as values below 1.0 may signal market bottoms and potential reversals.
- Track Bitcoin’s flag pattern for signs of a breakout above resistance levels, which could indicate significant upward movement.
- Pay attention to miner selling rates, as increased sales can impact overall market dynamics.
The upcoming period could see Bitcoin breaking through resistance, potentially pushing its price to $89,150, an increase of nearly $13,500 from current levels. This outlook remains contingent on overcoming the flag pattern with a decisive breakout.
