Experts Confident in Bitcoin’s Ability to Defend $60K Despite Bearish Pressure

Bitcoin has seen a decline of more than 6% over the past week. Successive corrections have temporarily pushed the asset below $60,000.

Although it has rebounded since then, its recovery appears to have stalled at around $61,500, causing investors to worry about further losses. This is especially true as the US government transferred 3,940 bitcoins to Coinbase Prime after receiving approval for liquidation.

However, QCP Capital believes that Bitcoin will be able to defend the $60,000 support level.

$60k Bitcoin Defense

On June 26, the U.S. government transferred 3,940 bitcoins to Coinbase Prime, the institutional trading arm of Coinbase. The tokens were initially seized from convicted drug dealer Asmit Singh earlier this year.

The transfer has raised concerns that the government may sell part of its bitcoin reserves, which could put downward pressure on the asset’s price, which was already suffering.

According to the latest analysis Shared by QCP Capital, Bitcoin effectively held the $60,000 support level despite intense downward pressure. He will be able to defend at this level for two main reasons.

First, a wallet identified as the German government has slowed the pace of transfers to exchanges, with just 250 BTC sent yesterday. This could signal the end of the current sell scheme.

Additionally, Bitcoin ETFs have seen net outflows of $52.4 million over the past two days after seven consecutive days of outflows. Taking these factors into account, QCP Capital, in its latest analysis, interprets the market as ripe for Bitcoin accumulation.

This interpretation could also indicate that the asset is now preparing from the beginning.

Is Bitcoin poised for a rally?

CryptoQuant’s latest research also pointed to signs of a local bottom forming for the leading asset. The on-chain intelligence platform highlighted that OI fell by $3 billion in the futures market as a result of the long liquidation. Funding rates for perpetual contracts are also close to zero, indicating a “balanced market” with a “healthier and less optimistic price structure.”

Furthermore, this week’s drop in Bitcoin’s price below $60,000 attracted a lot of buyers. In fact, Bitcoin holders who control 0.1% of the total Bitcoin supply added 7,130 Bitcoin to their holdings in just one day. The newly purchased Bitcoin is worth around $436 million. Interestingly, this particular accumulation also represents the highest net inflows since late May, which could indicate that investors are confident that the price will rise from here on out.