Bitcoin Price Prediction as Bears Take Control – Will BTC Fall Below $60,000?
Bitcoin (BTC) started the new week on a bearish note, dropping significantly overnight from $64,380 to $62,650. BTC has lost over 6% in the past week and is currently trading around $61,090.
The decline can be attributed to increased selling pressure from 1.9 million addresses that bought Bitcoin between $63,490 and $64,930, likely to lock in profits or limit losses. Additionally, miners have sold 30,000 BTC, valued at $2 billion, since June, adding to the market downturn.
The bullish US dollar, supported by stronger-than-expected US PMI data released on Friday, is another factor weighing on BTC prices. Speculation that the Fed may cut interest rates in September could limit deeper losses for BTC.
Analyst Checkmate suggests that Bitcoin’s current period of calm is temporary, with potential catalysts likely to drive prices higher in the future.
Bitcoin’s Temporary Stability and Future Catalysts for Price Growth
Analyst Checkmate highlighted on X today that Bitcoin has entered a period of calm. According to the analyst, this quiet phase is expected to be short-lived, as markets typically require a catalyst to push prices higher.
The current decline is seen as temporary, not a permanent trend. Analyst Checkmate believes that declines can serve as strong catalysts for Bitcoin, often signaling overlooked opportunities.
#Bitcoin has gone to sleep.
It doesn't stay this way for long.
The hard part about markets…
…is to go higher, we often need a catalyst…
…going lower is one of the most powerful catalysts…
…and it leaves a lot of people behind when it does. pic.twitter.com/V9G4P71ULz
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) June 23, 2024
This period of relative stability in Bitcoin, as noted by Analyst Checkmate, is viewed as a temporary lull rather than a lasting trend. The analyst anticipates that a catalyst will be necessary to drive prices upward, emphasizing that downturns can often signal opportunities for significant future gains.
- Bitcoin has entered a period of calm.
- Declines are seen as temporary, signaling potential opportunities.
- A catalyst is expected to drive prices higher.
Impact of Increased Bitcoin Miner Selling on Market Trends
Bitcoin miners have ramped up their selling since the start of the year, unloading about 30,000 BTC, valued at roughly $2 billion, since June. This increase in selling activity may be due to factors like unpredictable prices or the need to cover operational expenses.
The impact of miners offloading such a significant amount of Bitcoin becomes more noticeable when considering the BTC held across different addresses at current prices. This increased selling by miners, driven by volatile prices and operational costs, may affect market trends and investor sentiment, influencing Bitcoin’s price movements.
- Bitcoin miners have sold 30,000 BTC, valued at $2 billion, since June.
- Selling driven by volatile prices and operational costs.
- Significant impact on market trends and investor sentiment.
US Dollar Strength and Economic Data on BTC Price
Despite increasing bets that the Fed will cut rates in September, the US dollar has gained momentum due to stronger-than-expected US PMIs. This has pushed the dollar to its highest level since May 9. Markets are still pricing in the possibility of two rate cuts this year amid signs of easing inflation. This scenario could cap any additional gains in the US dollar, but the current bullish trend in the dollar has undermined BTC’s price.
On the data front, the US composite PMI rose slightly from 54.5 in May to 54.6 this month, reaching its highest level since April 2022, indicating a strong finish to the second quarter. Input prices declined to 56.6 from 57.2, while output prices slowed to 53.5, showing some of the smallest increases in four years.
- US dollar gains momentum amid strong US PMIs.
- Market still expects two rate cuts this year.
- Strong US dollar trend undermines BTC price.
Bitcoin Price Prediction
Bitcoin is currently trading at $61,090, down 0.44%. The pivot point, marked at $62,140, is a critical level to monitor, suggesting a bearish Bitcoin price prediction.
Immediate resistance levels are identified at $63,440, $64,510, and $65,710. If the price breaks through, these levels suggest potential upward movement, offering traders insight into possible bullish scenarios.
On the downside, immediate support is found at $60,620, followed by $59,670 and $58,630. These support levels indicate where the price might stabilize if it continues to decline, providing a roadmap for traders to plan their positions.
The RSI stands at 13, indicating an oversold condition. This suggests that the current selling pressure might be overextended, potentially leading to a rebound. Additionally, the 50-day Exponential Moving Average (EMA) is positioned at $63,870, serving as another critical level to watch for potential resistance.
The overall outlook remains bearish below the pivot point of $62,140. A break above this level could shift the bias to bullish, indicating the possibility of a price recovery.
