July 14, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Bitcoin's June Downtrend Faces Possible Reversal

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Bitcoin (BTC) has come under the pressure of a downtrend in June so far. according to the trader identified as Rekt Capital. However, a break of this trend could trigger a price reversal and return BTC to its upward movement.

In particular, the price reversal would not be the beginning of a parabolic bullish movement, but rather a local rollback. This means that Bitcoin would still be stuck in the range between $60,600 and $71,500, which is constantly described by Rekt Capital in their analysis.

Furthermore, the price development so far is comparable to previous 60-day periods post-halving, which could calm investors who are desperate for the current bull cycle to come to an end.

Rekt Capital also identified a pattern where Bitcoin could retreat to $64,000 in the coming weeks and slowly rise back to $71,000 through September.

Image: Rekt Capital/TradingView

Bitfinex analysts recently identified that Bitcoin is under pressure from different investors, such as whales, long-term holders, and miners. As reported According to Crypto Briefing, the on-chain data related to those three groups of BTC holders remains unfavorable for the future of Bitcoin.

BTC inflows to exchanges have increased as a proportion of total inflows, indicating increased whale activity and a trend that typically precedes a price drop. Furthermore, an inverse relationship has been observed between the price of Bitcoin and miners' reserves, with a notable decline in miners' reserves coinciding with the peak of the Bitcoin price around March 2024.

This indicates that miners were selling to capitalize on the high prices and prepare for the halving event. As mining reserves approach four-year lows, it suggests that selling pressure from this group may be approaching a critical point, which could impact future market dynamics.

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