Bitcoin recently experienced a significant influx of $31 million, which prevented its price from dropping below $58,000. The value has since rebounded to $61,000, but there is speculation about whether it could decline again.
Bitcoin’s Recent Price Movement
On June 25, Bitcoin’s price fell to $58,890 but managed to recover, stabilizing around $61,095.35. Despite this recovery, there is ongoing concern about another potential decline. Many crypto analysts attribute this volatility to traders and miners opening new long positions since the Bitcoin halving event.
Historical Context of BTC Price
At the start of June, Bitcoin peaked at $71,103. However, a continuous downtrend since June 6 led to the recent lows. This decline was mainly due to significant liquidations on various decentralized finance (DeFi) platforms.
Bitcoin Inflows Saved the Day
Bitcoin started a major downtrend on June 24 but managed an upsurge due to increased inflows in US spot Bitcoin ETFs. The price rose to $62,322 before a minor correction. The seven-day outflow streak for BTC Spot ETFs ended on Tuesday with an inflow of $31 million.
Impact of Bitcoin ETF Trusts
Bitcoin ETF trusts, such as Blackrock’s IBIT and others, had seen minimal activity until this recent inflow. Over the last 13 days, there were only two minor inflows under $2 million. However, IBIT’s $1.1 million inflow was sufficient to boost BTC’s price.
Leading Bitcoin Inflows
Fidelity’s FBTC led the ETF inflows with $19 million, followed by Grayscale’s GBTC with $4 million. This influx indicated bullish sentiments among investors ahead of the $6.68 billion BTC options expiry. Additionally, $3.5 billion worth of ETH options are set to expire, potentially influencing a positive trend.
Will BTC Drop Below $60K Again?
Despite the recent price recovery, BTC remains in a selling zone. The MACD (12,26) level is at -1697, indicating a selling trend. However, the Relative Strength Index has improved from an overselling zone to a neutral position with 34 points.
Moving Averages and Resistance Levels
The exponential and simple moving averages from 5 to 100 frames support the selling trend, but the 200-week range shows key resistance around $65,312. If BTC surpasses this resistance, it could lead to an uptrend and a new all-time high. Conversely, if the price drops below $60,783, it risks falling below the $60K mark.
Analysts’ Predictions
Some analysts believe a drop below $60K is unlikely due to consistent Bitcoin inflows and favorable chart patterns. Crypto analyst, Titan of Crypto, predicts an imminent BTC bounce, suggesting a potential breakout. However, the next few hours are crucial in determining the market’s direction.
