Bitcoin Bears Take Control: The start of the new week saw a sharp decline in Bitcoin (BTC), which fell from $64,380 to $62,650 overnight. With a weekly loss of more than 6%, the price of BTC is currently at $61,090.
Increased selling pressure from 1.9 million addresses that purchased Bitcoin between $63,490 and $64,930—likely to lock in profits or limit losses—is to blame for the decrease. To further compound the market decline, miners have sold 30,000 BTC, worth a total of $2 billion, since June.
Bitcoin prices are also being impacted by the strengthening US dollar, which was reinforced by Friday’s better-than-expected US PMI data. Deeper losses for Bitcoin may be prevented by speculation that the Fed may lower interest rates in September. The current calm in Bitcoin, according to analyst Checkmate, is just transitory.
Bitcoin’s Temporary Stability and Future Catalysts for Price Growth
Today, analyst Checkmate noted on X that Bitcoin has entered a quiet phase. The analyst predicts that this peaceful period will pass quickly because markets usually need a catalyst to drive prices higher.
The current downward trend is thought to be transitory rather than ongoing. Declines, according to analyst Checkmate, can act as potent drivers for Bitcoin and frequently indicate missed chances.
According to Analyst Checkmate, this period of relative stability in Bitcoin is thought to be a brief lull rather than a long-term trend. The analyst notes that downturns frequently indicate potential for sizable future gains and predicts that a trigger would be required to push prices higher.
- 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 the Market Trends
Since the beginning of the year, bitcoin miners have increased the amount of cryptocurrency they sell. Since June, they have sold over 30,000 BTC, or about $2 billion. There are a few possible reasons for this surge in selling activity, including fluctuating pricing or the requirement to pay for operating costs.
When one considers the total amount of Bitcoin owned at present prices across various addresses, the impact of miners unloading such a large proportion of the cryptocurrency becomes more apparent. Bitcoin Bears Take Control Due to fluctuating prices and operating expenses, miners have been selling more, which might have an impact on market trends and investor sentiment and shift the price of Bitcoin.
- Bitcoin miners have sold 30,000 BTC, valued at $2 billion, since June.
- Selling is 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 rising wagers that the Fed would cut rates in September, stronger-than-expected US PMIs have boosted the US dollar. This raised the dollar to its highest level since May 9. Due to declining inflation, markets are still pricing in two rate cuts this year. Bitcoin Bears Take Control The dollar’s bullish tendency has hurt BTC’s price, but this scenario could constrain dollar gains.
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The US composite PMI climbed from 54.5 in May to 54.6 last month, reaching its highest level since April 2022, signaling a solid second quarter. Input prices fell to 56.6 from 57.2 and output prices fell to 53.5, the weakest gains in four years.
- US dollar gains momentum amid strong US PMIs.
- The market still expects two rate cuts this year.
- Strong US dollar trend undermines BTC price.
Bitcoin Price Prediction
Bitcoin is presently trading at $61,090, down 0.44%. The pivot point at $62,140 indicates a bearish Bitcoin price prediction (an important level to observe). The immediate resistance levels are $63,440, $64,510, and $65,710. Traders can see positive scenarios if the price breaks through these levels.
Downside support is $60,620, then $59,670 and $58,630. The price may stabilize at these support levels if it continues to fall, helping traders plan their strategies.RSI 13 indicates oversold. This shows that selling pressure may be overdone, causing a comeback. The 50-day Exponential Moving Average (EMA) around $63,870 is another resistance level to watch. Below $62,140, the outlook is gloomy. If this level breaks, the bias may flip to bullish, suggesting a price recovery.
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