Tech
Bitcoin Price Crashes to $62,000 as Whale Transactions Drop to Eight-Month Low
Bitcoin is facing strong selling pressure, falling to a new 40-day low of $62,667 as of Monday, June 24.
As the attention of institutional investors moves towards Ethereum and stock markets soar, BTC has lost over $150 billion from its market cap. This represents a decline of over 12% between June 21 and June 15.
Below is a breakdown of Bitcoin’s possible trajectory over the next few days.
Whale Investors Bitcoin Transactions Hit Eight-Month Low
Bitcoin has been posting a bearish outlook for most of June following strong competition with stock market prices soaring and Ethereum ETFs to attract the attention of investors.
Furthermore, its drop below the $65,000 price level is likely due to a decline in trading activities. According to data According to IntoTheBlock, whale BTC transactions have been rapidly declining since March 2024.
Bitcoin has seen 4,580 separate large transactions above $100,000. Historically, the last time BTC whale transactions fell below 4,580 was October 9, 2023, about eight months ago.
So, Bitcoin whale transactions reach a lowest in the last eight months could signal a possible drop to $60,000 in the coming days. This drop in whale activity may have contributed to the current downtrend in Bitcoin’s price.
In the Block Note that the behavior of long-term holders is a key indicator for understanding a market cycle. The data reveals that long-term Bitcoin holders began selling their holdings in January.
In contrast, long-term Ethereum holders have continued to accumulate ETH tokens. Ethereum currently has more return opportunities, making it a more attractive option.
The report also notes that long-term Bitcoin holders have started taking profits after the Spot ETF-led price surge. However, Ethereum holders are still anticipating the launch of the Ethereum Spot ETF and a possible rally.
Furthermore, IntoTheBlock revealed that the April halving event reduced miners’ profits, leading to a sell-off. According to the report, Bitcoin miners sold over 30,000 BTC tokens in June worth around $2 billion, with miner inventories hitting 14-year lows. Hence, these additional BTC sales also contribute to the price decline observed in June.
Bitcoin Shows Bearish Trend, What Does the Future Hold for Apex Cryptocurrency?
BTC has lost 8.9% of its gains over the past 30 days as sellers continue to apply pressure. As of 5:50 AM EST, Bitcoin is trading at $61,349with a drop of 4.5% in the last 24 hours.
Bitcoin has entered a descending channel, forming lower lows on the daily chart. It has broken below the $63,500 price level and is falling to the $60,500 support.
Additionally, BTC is trading below the Parabolic SAR indicator, which suggests further decline for the asset. The RSI indicator is in the oversold region with a value of 28.45, which implies that sellers are still in control.
Bitcoin price is likely to drop below $60,500 if buying activity remains low in the coming days until buyers return to the market.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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