Bitcoin ($BTC) The recoveries in March and April restored some positive sentiment in the market, but the retracement below $60,000 in early June dented this optimism once again.
From a technical perspective as well as from on-chain metrics, $60,000 to $70,000 was the primary demand zone.
As reported by AMBCrypto: $BTC Within this critical structural support zone, the hands of circulating supply have changed hands. This was claimed to be one of the largest transfers from a weak hand to a strong hand in Bitcoin history.
Bitcoin forced sale is not over yet
Long-term holders are steadily offloading their tokens. At the same time, exchanges’ Bitcoin reserves continue to decline, suggesting fewer coins are available for immediate sale.
The strategy added to its holdings again last week, but there was evidence that Whale Wallet was treating the $615,000 zone as a key buy zone.
In a post on X, Santiment pointed out that 35.82% of the Bitcoin supply is held by whale wallets with at least $1,000. $BTC. Their holdings increased to 7.17 million coins, the highest amount in three months.
Whale accumulation during a period of price slump is an encouraging sight, but it may not be enough to reverse the long-term downward trend. AMBCrypto reported that miner stress has not eased and the extreme bearish phase of the cycle has not yet been reached.
Cryptocurrency analyst Axel Adler Jr. drew attention to how gold and Bitcoin reacted differently to the Fed’s decision not to move interest rates. Gold fell to $4,220 but quickly regained $4,300.
Meanwhile, beleaguered Bitcoin was testing the short-term support zone at $64,000.
The analyst noted that capital favors defensive assets over risk assets. If gold continues to be bought, $BTC A move near the lows of $63.5,000 would confirm relative weakness.
Final summary
- Increased sales from miners, steady $BTC Spot ETF outflows and selling by large holders reflected growing market pessimism.
- The rebound from the $60,000 bottom is fragile, and a rebound from $67,000 and a steady wave of selling could send the price flailing again.
