By
Bena Ilyas
June 27th, 2024
Bitcoin (BTC) price has signaled further market correction as investors show midterm disinterest in the crypto space.
The total cryptocurrency market slipped over 2% in the past 24 hours, led by Bitcoin (BTC), to hover around $2.46 trillion on Friday during the London session. The altcoin industry registered more bearish volatility, thus resulting in more than $129 million in forced liquidations.
The LayerZero (ZRO) airdrop caught the attention of most retail traders as the Binance crypto exchange ushered in its airdrop period for the BNB (BNB price data) holders.
Bitcoin Suffers Heightened Selling Pressure
Bitcoin (BTC) price has struggled to rally beyond $72k in the past few months, despite the approval of several spot BTC ETFs in different jurisdictions led by the United States and Hong Kong. The lack of Bitcoin’s bullish momentum has been attributed to heightened selling pressure, precisely originating from Coinbase Global Inc. (NASDAQ: COIN).
#Bitcoin selling pressure is originating from Coinbase. pic.twitter.com/Cwz95TLsCt
— Ki Young Ju (@ki_young_ju) June 20, 2024
Notably, Coinbase has been absorbing the heightened Bitcoin selling pressure from spot BTC ETFs in the last few weeks.
On Thursday, June 20, United States-based spot BTC ETFs registered a total cash outflow of about $139 million.
Grayscale’s GBTC led in net cash outflow on Thursday of about $53 million, closely followed by Fidelity Investments’ FBTC with a total of $51 million. Bitwise’s BITB registered one of its highest daily cash outflows of about $32 million.
Meanwhile, BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) registered a total cash inflow of about $1 million on Thursday. As a result, US-based spot BTC ETFs have registered five consecutive days of net cash outflows.
🚨 $BTC #ETF Net Inflow June 20, 2024: -$140M!
• The net inflow has been negative for 5 consecutive days.
• Only #BlackRock (IBIT) experienced a small inflow of $1.5M yesterday.
• #Grayscale (GBTC) experienced the highest outflow of the day at $53M. This ETF has suffered a… pic.twitter.com/XC6n5bJl5D
— Spot On Chain (@spotonchain) June 21, 2024
What Next for BTC Price Action
Bitcoin price has signaled midterm bearish sentiment after consistently closing below the daily 50 Simple Moving Average (SMA). Additionally, the weekly Relative Strength Index (RSI) has been falling towards the 50 level after slipping below the 70 level in April.
According to Axel Adler, an on-chain analyst and macro researcher at CryptoQuant, Bitcoin price has entered a macro waiting phase as low demand and market pessimism continue to rise.
The weekly change in the cost basis Bitcoin cohorts dropped to 0%. This could be interpreted as market pessimism or a lack of demand and supply.
I would call this a “waiting phase.”#HODL pic.twitter.com/g6X9D5GppL
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) June 20, 2024
From a technical standpoint, Bitcoin price could continue dropping in the coming weeks towards the support level of around $63,300k. If the $63k support level fails to hold, the flagship coin will drop further towards the range between $58k and $60k.
Ultimately, Bitcoin price is on a macro-rising trend following the fourth halving event, in addition to other favoring fundamentals. As a result, some crypto analysts have set a long-term target of between $$120 and $250k.
Bigger Picture
The approval of spot Ethereum ETFs in the United States amid the changing crypto regulatory environment has favored the mass adoption of the altcoin industry. Already, a Solana ETP could be unveiled soon in Canada, which could trigger the application of similar products for other altcoins.
With Bitcoin dominance approaching a major resistance zone, which could lead to a reversal, the altcoin industry will experience heightened bullish volatility ahead.