By
Chimamanda U. Martha
June 28th, 2024
Bitcoin price has established a robust support level between $60K and $61K, despite the accelerated selling pressure led by the US and the German government.
The total cryptocurrency market cap stabilized at about $2.38 trillion on Thursday as Bitcoin (BTC) price hovered around $61K in the past 24 hours. After shedding more than 12 percent in the last three weeks, the flagship coin is about to end June in a red month.
From historical data, Bitcoin price has rebounded by double percentage points in July after a choppy June in the past five years.
However, Bitcoin bulls must defend the support level around $60K to avoid further capitulation towards $48K.
The heightened crypto cash rotation to the Ethereum sector due to heightened speculation on spot Ether ETFs in the United States has weighed heavily on Bitcoin bulls. Moreover, Bitcoin dominance has continued to form a weekly reversal pattern backed by a bearish divergence on the Relative Strength Index (RSI).
Spot Bitcoin ETFs Signals Imminent Recovery
After more than two weeks of significant cash outflows from the United States spot Bitcoin ETFs, the trend has gradually changed in the past three days. According to the latest market data, the US-based spot Bitcoin ETFs registered a total cash inflow of about $21.52 million on Wednesday.
The Grayscale Investments’ GBTC recorded a cash inflow of about $4 million on Wednesday. The largest cash inflow to the spot Bitcoin ETFs in the United States was reported by Fidelity Investments’ FBIT with around $19 million. VanEck’s HODL reported a cash inflow of about $3 million, thus a net inflow of around $521 million.
Meanwhile, the Ark and 21Shares’ ARKB reported a net cash outlook of about $5 million on Wednesday. The rest of the spot Bitcoin ETFs led by BlackRock’s IBIT recorded zero cash flow on Wednesday.
Market Picture
More than two months since the fourth Bitcoin halving, the adoption of crypto assets and Web3 protocols is gradually increasing globally. According to market data provided by IntoTheBlock, there are currently more than 1 million Bitcoin whole-coiners, amid the 18 percent decline in the supply of holders in profit.
Nonetheless, the average monthly volume of Bitcoin transfers between $1-10K has decreased by 30 percent from the $63K level.
It appears that sellers are still dominant in the market, with a large level of sell orders sitting at 62K. pic.twitter.com/kecGNqeFPQ
— Bitcoinsensus (@Bitcoinsensus) June 27, 2024
The accelerated Bitcoin sell-offs from the German and the United States government have continued to weigh heavily on buyers. In the past week, the German government has sold over 5k Bitcoins, worth more than $306 million.
On Wednesday, the US government sent 3,940 BTCs to Coinbase Prime Wallet, according to an on-chain analysis by Arkham Intelligence.
Meanwhile, the anticipated listing of spot Ether ETFs in the United States earlier next month will rejuvenate the crypto bullish outlook. Furthermore, the crypto liquidity will gradually increase with anticipated heightened cash inflows to the altcoin industry.