Bitcoin’s recent decline, which began two weeks ago and caused a drop from $70,000 to $58,500, appears to have temporarily ended. Following the decline, there was a recovery, and the price rose back to the $62,000 level. However, today, the price has started to decline once again.
Bitcoin’s price did not show a significant response to the latest US macroeconomic data. The Core Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve’s preferred inflation measure, increased by 2.6% annually in May, reaching its lowest level since March 2021. Monthly reviews revealed a slow increase of 0.1% in the core PCE, the slowest rise since November 2023. Despite these developments, the price of BTC continues to find buyers at the $60,000 level.
In the US, there has been a significant movement of approximately 11.84 BTC worth about $726,000 from government-related addresses to new addresses. Such transactions have also resulted in larger cryptocurrency transfers.
Leading analysts believe that Bitcoin’s price is gradually approaching a level below $60,000. If the price drops to these levels, a significant decline may occur, potentially causing the price to fall to $54,000. According to the CryptoQuant chart, Bitcoin’s critical support level is observed at around $56,000. If this level is broken, a sharper decline may follow.
Analyst Willy Woo suggests that the recent drop in Bitcoin’s price to $58,000 is due to significant pressure from positions awaiting liquidation and miners selling to reduce their expenses.
Another factor contributing to Bitcoin’s price decline is the decrease in demand from long-term investors nationwide. There has been a noticeable drop in demand from BTC holders who invest with long-term expectations. Data from IntoTheBlock shows that approximately 160,000 BTC worth around $10 billion were sold in May, and an additional 40,000 BTC were seen to have decreased from long-term investors’ wallets in June. These declines are believed to be parallel to the price fluctuations in BTC and are thought to be impacting the price decline.
Please note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
