Bitcoin has been facing a challenging week with a more than 6% decline, causing the asset to briefly drop below $60,000. Despite a rebound, the price has stalled around $61,500, leading to concerns among investors about potential further losses. The recent transfer of 3,940 BTC by the US government to Coinbase Prime has also raised worries about a possible sell-off that could impact the price negatively.
However, QCP Capital remains optimistic about bitcoin’s ability to defend the $60,000 support level. They point out that despite bearish pressures, bitcoin has managed to hold strong at this level for two main reasons. Firstly, the German government has slowed down its transfers to exchanges, indicating a potential end to their selling activities. Additionally, Bitcoin ETFs have seen net outflows, suggesting a favorable environment for bitcoin accumulation.
In line with this analysis, CryptoQuant’s research also suggests that bitcoin may be preparing for a bullish move. The on-chain data indicates that the local bottom has been formed, with a decrease in open interest and funding rates nearing zero, signaling a balanced market with a healthier price structure. Moreover, the recent drop below $60,000 attracted significant buying interest, with a notable accumulation of 7,130 BTC by holders controlling 0.1% of the total bitcoin supply.
This accumulation, totaling around $436 million, marks the highest net inflows since late May and indicates investor confidence in a potential price increase. These factors combined suggest that despite the recent challenges, bitcoin may be gearing up for a positive move in the near future.
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