Bitcoin (BTC) has had a challenging month in June, experiencing a decline in price due to macroeconomic setbacks. Last week, the German market saw a significant sell-off of BTC, further weakening the overall market. Today, this trend continued with a rapid decline in BTC price. QCP Capital analysts have been closely evaluating the current situation and have made predictions for the markets.
At the time of writing, BTC was priced at $61,300 but dropped to $60,567, causing a ripple effect in altcoins. Altcoins, which have already been experiencing capital outflows for several weeks, reached oversold levels with today’s decline.
In their assessment, QCP Capital highlighted the following points regarding Bitcoin (BTC):
1. Miner reserves have fallen to a 10-year low, which, coupled with news of the return of MTGOX assets, has accelerated the decline in BTC price due to large-scale sell-offs.
2. Despite investors’ expectations of a rebound, daily closes at lower levels suggest that altcoins may continue to experience weakness for some time.
3. Although the decline in inflation on the Federal Reserve (Fed) front has not been very responsive, there is a possibility that investors might feel somewhat relieved if the Personal Consumption Expenditures (PCE) data on Friday meets or falls below expectations. Additionally, if the Securities and Exchange Commission (SEC) approves S-1 Forms for the Ethereum (ETH) Exchange-Traded Fund (ETF) by the end of the month, it could increase risk appetite and pave the way for listing on exchanges.
BTC has been testing the $60,400 region at least five times since February 28, and the $71,800 level has also been tested five times. Despite the price fluctuating between these highs and lows, a significant breakout has yet to be observed. If BTC experiences a downward breakout, it is possible to see new spikes between $56,840 and $52,400.
In conclusion, it is important for investors to be aware that the information presented in this article does not constitute investment advice. Cryptocurrencies are known for their high volatility and, therefore, carry inherent risks. It is recommended that investors conduct their own research before making any investment decisions.
