Bitcoin Price Forecast: Whales Dump $1.2 Billion BTC, Is $60K in Sight?
Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, is facing challenges as it struggles to maintain its value. It has remained below the $65,500 mark and even hit a low of $64,100 in a single day.
The global crypto market cap has also seen a decline of 2.50%, currently standing at $2.37 trillion. This bearish trend can largely be attributed to the US Federal Reserve’s hawkish stance, which has put significant pressure on the crypto market.
Furthermore, the recent outflows from Bitcoin ETFs like Fidelity’s FBTC and Grayscale’s GBTC indicate a bearish sentiment, adding to the downward pressure on Bitcoin’s price.
Impact of Whales Selling $1.2 Billion BTC on Bitcoin Price and Market Sentiment
Data from CryptoQuant reveals that whales have sold over $1.2 billion worth of Bitcoin in the past two weeks. These major Bitcoin holders show little signs of renewed buying interest, indicating a continued lack of upward momentum for the cryptocurrency.
Analysts note that traders are not increasing their Bitcoin holdings, and demand from large holders remains weak. Observers suggest that crypto miners may be diverting their attention to the rapidly growing AI sector, choosing to sell their Bitcoin rewards instead of holding onto them.
Both the cryptocurrency and AI sectors heavily rely on powerful computing chips to operate and maintain data.
The Impact of US Economic Data on Bitcoin and the US Dollar
The broad-based US dollar is currently under pressure due to weaker retail sales and easing inflation data. This has raised market expectations for Federal Reserve rate cuts. Despite the Fed’s more hawkish stance, which indicates only one rate hike this year, investors anticipate two hikes in 2024.
Weaker economic data, including disappointing retail sales and declining inflation, suggest a slowing economy, making the case for the Fed to lower borrowing costs sooner than expected. This uncertainty surrounding the Fed’s rate path has resulted in subdued and range-bound price action in the Bitcoin market.
The Commerce Department reported that US retail sales increased by only 0.1% in May, slightly below the expected 0.2% increase. This weaker print indicates consumer exhaustion and a slowdown in economic activity, further reinforcing the expectation of the Federal Reserve lowering borrowing costs sooner than anticipated.
Spot Bitcoin ETF Exits and their Impact on Cryptocurrency Market Sentiment
The recent exits from spot Bitcoin ETFs, particularly Fidelity’s FBTC and Grayscale’s GBTC, totaling $152.42 million, have exerted significant downward pressure on Bitcoin and other cryptocurrencies.
Fidelity’s ETF experienced the largest exit of $83 million, followed by Grayscale with $62 million. This trend, combined with broader market declines, has raised concerns about a potential new bearish phase in cryptocurrencies.
Altcoins have also suffered significant losses, declining from over $760 billion to $603 billion since March.
Despite this, there is still optimism for a potential recovery with renewed investments. The substantial exits from spot Bitcoin ETFs have intensified the downward pressure on BTC and cryptocurrencies, contributing to concerns about a potential new bearish phase in the market.
Binance CEO’s Positive Bitcoin Price Forecast Amid Market Volatility
Despite recent market volatility, Binance CEO Richard Teng remains optimistic about Bitcoin’s future. He predicts that it will surpass $80,000 by the end of 2024, with even greater gains expected in 2025. He highlights a unique market cycle where Bitcoin leads, followed by meme coins, unlike previous cycles.
The recent declines to around $66,000 were influenced by the Federal Reserve’s hawkish stance, which caused significant outflows from crypto Exchange Traded Products (ETPs) totaling $600 million last week.
Currently, Bitcoin is trading below $65,500, with an uncertain market direction. In contrast, altcoins are mostly experiencing positive movements, indicating ongoing market volatility and anticipation for potential breakout trends.
Bitcoin Price Prediction
Bitcoin (BTC/USD) is currently trading at $65,500, showing a 0.51% increase on the 4-hour chart. Key price levels to watch include a pivot point at $65,700, suggesting a bearish Bitcoin price prediction.
Immediate resistance levels are at $66,800, $67,800, and $68,500. Immediate support is noted at $64,200, followed by $63,200 and $62,300.
Technical indicators show a Relative Strength Index (RSI) at 50 and a 50-day Exponential Moving Average (EMA) at $65,900.
The downward channel indicates a bearish trend for Bitcoin. The closing of candles below the 50 EMA and an RSI below 50 further support the potential for a downtrend.
The overall outlook remains bearish below $65,700. However, a break above this level could enhance bullish momentum.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
