Bitcoin has been on an incredible run over the past year, which started with its price hitting a high of $20k in December 2017 and ended with it falling by more than $6k yesterday. At this point, many of the biggest cryptocurrency fans are losing sight of the fact that Bitcoin is merely a medium of exchange and it is extremely volatile, and this volatility is likely to continue. This is problematic for enthusiasts who have put some of their life savings into the digital currency, and for those who are starting to become more familiar with the space.
The bitcoin price fell yesterday to a near three-month low, although it later recovered. The price fell below $3600 after a cryptocurrency investor made a bold prediction, suggesting that bitcoin would go back to $4000 in the coming weeks.On the 18th. In June, bitcoin (BTC) and traditional markets faced another day of downward pressure. Comments from the US Federal Reserve about the possibility of an earlier-than-expected rate hike drove the US dollar higher, to the detriment of risky assets and government bonds. The Fed doesn’t deserve all the credit, however, as fears of another decline in BTC have been building for weeks and much of the discussion has focused on the impending death cross and what that means for bitcoin’s future. A death cross can happen in a few days. ….. Be prepared. A strong bearish signal. Warning for Trader$Btc #Bitcoin pic.twitter.com/RaBVZPKOnZ – Mīss ÇRypTö (@infoNataliya) June 17, 2023 Today’s wave of selling sent the price of bitcoin below the crucial support of $36,000, leading traders to predict $32,500 as the next stop before bitcoin returns to the $30,000 low. 4 hour chart BTC/USDT. Source: TradingView These technical factors, combined with negative headlines such as Chinese authorities shutting down cryptocurrency miners and the recent eviction of Iron Finance, which caused cryptocurrency advocate and billionaire investor Mark Cuban to lose money, have made traders concerned about the current decline in bitcoin prices. Crypto Fear and Greed Index. Source: Alternative.me Due to these concerns, the Cryptocurrency Fear and Greed Index dropped to 25, indicating extreme fear and continuing the trend of the past month.
Increase in inventories held for sale
Data from data analytics firm CryptoQuant shows that net flows of BTC to exchanges served as a warning to traders before the price plummeted from $41,000 to $36,000 this week. An increase in the flow of BTC to the exchanges took place on the 15th. In June, the price of BTC reached $41,300, only to fall 15% over the next three days. All net bitcoin exchanges. Source: CryptoQuant A watchdog analyst noted that whale activity on crypto exchange Gemini, in particular, correlates significantly with some of the major sell-offs the crypto market has seen in 2023. #Gemini is the whale for #BTC. In retrospect, the biggest adjustments were caused by the twin whales. We can speculate that the positive net flow of $BTC on Gemini may indicate a local top. Props to @cryptoquant_com and @ki_young_ju for providing this. pic.twitter.com/Y1SiqlSoSV – Vish – @KryptoniteTrading (@KryptoniteTrade) 16. June 2023 The net flow of bitcoin to exchanges has stabilized in recent days, with inflows only slightly outpacing outflows, and market participants are now waiting to see which way the price will go as the dreaded death cross approaches. Related: Traders look for bearish signals after drop in bitcoin futures
Smart money continues to flow to
While investor fears are rising and some traders who bought between the March and May highs are selling at a loss, the total supply of bitcoin held by long-term holders continues to rise after bottoming in mid-May. Total number of bitcoins held by long-term holders. Source: Glassnode According to Twitter crypto-currency analyst William Clemente III, the latest blockchain data shows that BTC is oversold and is now at historically important inflection points for major blockchain action. Clemente said long-term holders continue to skim BTC at a discount, which has helped offset sales by short-term holders, and he pointed to the fact that hoarding is increasing. Overall, BTC’s near-term future remains risky, as previous deadly crossovers have been followed by a similar pre-crossover downturn, according to cryptocurrency analyst and trader Rekt Capital. Bitcoin resurrected after 2019 death cross. Source: Twitter On the other hand, longer-term data points to a more optimistic future, as wallets and long-term holders continue to increase their bitcoin balances. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.
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