Bitcoin (BTC) has been facing challenges in gaining momentum and increasing its value. On June 21, it experienced a 3% drop, falling below $64,000 and currently hovering slightly above that mark. This marks an 8% decrease in the past month. Despite expectations of a price surge, BTC has struggled to regain its previous momentum when it surpassed $70,000.
Recent data shows that whales and miners have sold off over $1.2 billion worth of BTC in the last two weeks due to the declining prices. Factors such as a strong US dollar and investor preference for more stable markets have contributed to these sell-offs, which could potentially keep BTC below $70,000 for an extended period. Some traders even anticipate a further drop to $60,000 in the near future.
According to analysis by Santiment, the sentiment surrounding Bitcoin has been predominantly negative in recent weeks. Fear, uncertainty, and doubt (FUD) have been high among investors, leading to increased selling pressure and discouraging new buyers from entering the market. This negative sentiment is reflected in the significant outflows from BTC exchange-traded funds (ETFs), totaling over $139.88 million on June 21 and reaching over $900 million for the week.
Santiment’s research indicates that traders are feeling fearful or indifferent towards Bitcoin as it trades between $65,000 and $66,000. This prolonged period of FUD is uncommon and has led to a trend of traders capitulating. However, Santiment suggests that those who remain patient and hold onto their BTC during this turbulent phase may ultimately benefit, as trader fatigue and whale accumulation often result in price rebounds that reward long-term holders.
By analyzing online mentions of Bitcoin and comparing positive and negative sentiments, Santiment has determined that the Weighted Sentiment Index for the asset remains negative. Despite this, the long-term outlook for BTC remains bullish, as it continues to trade at levels significantly higher than six months ago.
While the current market conditions may be challenging for Bitcoin, there is still optimism for a potential recovery and future price growth. Investors and traders are advised to exercise patience and monitor market developments closely to capitalize on potential opportunities for profit in the volatile cryptocurrency market.