Bitcoin (BTC) has recently struggled to regain its upward momentum.is still in a consolidation phase above the crucial support level of $60,000. Despite hitting an all-time high three months ago, the largest cryptocurrency saw a drop to $59,500 on Wednesday due to increased selling pressure from miners.
Bitcoin sell wave
The current Miners surrenderthe longest seen since the summer of 2022 before the FTX collapse, indicates the impact of supply pressure on Bitcoin Halving.
Cryptocurrency analyst Ali Martinez pointed out that Bitcoin miners Sold Over 2,300 BTC have been sold in the past three days, equivalent to roughly $145 million.
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This selling pressure from miners adds to the recent pressures. BTC sales by the US and German governmentswhich contributed to the downward pressure on the market and kept prices within the lower range of the broader $60,000-$70,000 consolidation zone that we have seen in recent months.
It is worth noting that addresses linked to the German and US governments sent $737 million worth of bitcoin to exchanges, including Coinbase, Bitstamp, and Kraken, in various transactions.
As is the case selling pressure Although government and miner support is declining over time, market observers are anticipating a potential recovery in the BTC price, following the typical pattern observed during the post-halving period, where new all-time highs are often achieved.
Bitcoin Price Prediction
Market Expert Scott Melker pointing to The market is expected to approach a decisive signal, with expectations that if a daily candle closes below $60,300, it could lead to a bullish divergence.
This would require the daily RSI to move out of the oversold zone, similar to what happened last August when the price was around $26,000.
Melker stresses the need for a close below the mentioned level, followed by a clear upward movement in the RSI without any volatility. lowerIt would take a significant downward move for the RSI to fall below its June 24 level.
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However, crypto analyst Andrew Kang highlights the significance of the potential loss of the four-month range on Bitcoin, drawing parallels to the range observed in May 2021 after a parabolic rally in Bitcoin and altcoins.
Kang Notes That over $50 billion in crypto leverage is currently nearing an all-time high, plus the fact that the market has been in a prolonged consolidation phase for 18 weeks without experiencing a severe washout, as we saw during the 2020-2021 bull market.
Furthermore, Kang points out that initial estimates of a $50,000 stock price may have been too conservative, and that a more significant reset to $40,000 could be possible.
This pullback would have a significant impact on the market and would likely require a few months of volatile or bearish price action before a reversal and upward trend is established.
At the time of writing, Bitcoin has reclaimed the $60,350 level after briefly falling below this crucial support for further upside moves.
The largest cryptocurrency in the market has erased all of its gains on broader time frames, and is currently down 12% on the monthly time frame.
Featured image by DALL-E, chart by TradingView.com