By
Chimamanda U. Martha
June 28th, 2024
Bitcoin (BTC) price has suffered bearish sentiments in the past few weeks fueled by heightened selling pressure from whales.
The total cryptocurrency market cap had rebounded above $2.4 trillion on Friday as Bitcoin (BTC) price stabilized above $61K. The heightened altcoin speculation fueled by the upcoming listing of spot Ethereum (ETH) ETFs in the United States has weighed heavily on Bitcoin’s holders.
Moreover, more institutional investors, led by VanEck that filed for Solana ETF on Thursday, are seeking to diversify their crypto portfolio to the altcoin industry. Consequently, Bitcoin dominance has gradually been forming a reversal pattern that could trigger the much-anticipated altseason.
Crucial Bitcoin Price Level to Watch in Case of Capitulation
Bitcoin price has continued to hover around the lower border of the horizontal macro channel in the past four days. After rebounding from below $59K earlier this week, Bitcoin price has consolidated above $61K, but without a clear direction.
Having rebounded from the $60K severally in the past four months, Bitcoin price could easily rally towards $66K in the coming weeks. Moreover, the supply of Bitcoin addresses in profits has dramatically reduced as the daily Relative Strength Index (RSI) continues to hover around the oversold level.
According to on-chain data analysis provided by CryptoQuant, Bitcoin price could rebound toward a new all-time high fueled by reduced selling pressure from miners.
“Selling pressure of miners is weakening, and if all of their selling volume is absorbed, a situation may be created where the upward rally can continue again,” CryptoQuant noted.
Meanwhile, CryptoQuant has cautioned crypto traders to stay cautious if Bitcoin price falls and consistently closes below $56k. CryptoQuant based the argument on the Metcalfe Price Valuation Bands and concluded that a crypto bloodbath will happen if Bitcoin price drops below $56K.
The ultimate support level for #Bitcoin is $56K; falling below this could lead to a major correction. pic.twitter.com/ZD9xDN6wAm
— CryptoQuant.com (@cryptoquant_com) June 28, 2024
Bigger Picture
The cryptocurrency market has remained in a state of limbo amid increased midterm pessimism. More than two months since the fourth Bitcoin halving, Bitcoin price is yet to register the historical parabolic rally.
According to a popular crypto analyst alias Mags on the X platform, Bitcoin price is en route to $200k in the coming quarters based on historical performance.
#Bitcoin has topped out ? 🤔
A consolidation or dip after the Bitcoin halving is very common, as seen in each cycle. Historically, these dips have been a good time to accumulate some Bitcoin.
Many people confuse this with distribution or a cycle top and end up selling early or… pic.twitter.com/6qHHbpzWhR
— Mags (@thescalpingpro) June 28, 2024
As Coinspeaker reported, the US-based spot Bitcoin ETFs have begun accumulating more coins after a period of notable selling pressure. The demand for Bitcoin and other digital assets will remain high among institutional investors and retail traders due to the poor monetary policies made by most central banks.
The upcoming United States elections are expected to trigger crypto-bullish sentiments. Moreover, the anticipated interest rate cuts in the United States will push more investors into the Bitcoin and altcoin market amid the ongoing macro bull run.