Bitcoin started June 24 with massive declines, continuing the previous day’s trend. It failed to register any significant push to the top as several waves of large selloffs hit.
One such large sale is from the German government. The country’s police seized 50,000 BTC from a piracy website in January and sold over $325 million worth of the asset in the last 48 hours.
The month of June continues to be a bad end to the second quarter as miners continue to dump heavily. Reports show miners sold 30,000 bitcoin worth over $2 billion over the last twenty days.
The news of Mt. Gox’s planned settlement also spread panic throughout the market. Many assert that the now-defunct exchange will sell over $8 billion worth of crypto in the coming days to settle this debt.
It is also worth noting that the German government still has over $2 billion and will dump more in the coming days. Although miners’ reserves are low, they could continue to dump. With prospects of further selloff, traders could expect more price declines.
Current Price Trend
Bitcoin started June 24 trading at $63k, following an almost 2% decline on Sunday. It started a descent that saw it flip several critical levels. One such is the $60k support, which analysts predict will hold out. Due to the massive bearish sentiment, it dropped to a low of $58k.
Following the decline, the derivative market bled heavily. Traders lost over $370 million over the last 24 hours. The long position accounted for over 80% of the total liquidations
The current price indicates that the asset lost its pivot point but bounced off the first pivot support. The relative strength index continues its descent and is at a new low. The metric sank below 30 for the first time in almost six months. It is at 25 at this time.
With BTC being oversold, the bulls are getting ready for buyback. The wick sticking out from the candle indicates this readiness. Following its rebound, the apex coin is exchanging at $60k as recovery is underway.
Nonetheless, it is worth noting that the asset is printing sell signals on MAs. For example, the 50-day MA is edging downward and slowly towards the 200-day MA in a death cross.
Bitcoin is Primed for Another Rally
Previous price trends suggests that the apex coin is billed for massive price surges in the coming days. One such is its behavior following every period it was oversold.
The chart above illustrates what could happen following the most recent RSI drop below 30. Based on this figure, BTC gains over 70% following such a phenomenon. Since 2022, it took place thrice with the same bullish outcome.
As the dip continues, traders are soaking up the excess supply. Datamishi stated that since June 17, Bitfinex whales increased their long positions by over 2,380 BTC. The increase brings the total long positions to over 50,000 BTC
The latest increase in derivatives comes amidst an expected stablecoin boom. The MiCA provisions on stablecoins will take effect on June 30 and the regulation will start on December 31. EU banks, institutions, and current stable coin issuers will start minting trillions of Euro-backed stable coins, possibly as early as July.
Such an explosion in stablecoin will trickle into another volatile asset, with the apex coin seeing the most of it.
In the coming days, BTC will look to reclaim several critical levels. One such is the pivot point at $65k. Nonetheless, it must gain considerable stability above $60k. It may also hover around $63k for a period of time as the bulls accumulate and build momentum.
On the other hand, bitcoin tested its first pivot support a few hours ago. It may flip it if sell-offs continue.
