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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jun 26, 2024 10:44 UTC
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Bitcoin Dips Below $60k: Are We Nearing a Price Bottom?
Bitcoin price has been stable above $60,550 for the past few months despite recent drops.
Cash inflows into some Bitcoin ETFs and short-term holder profitability suggest a possible price bottom.
Upcoming US economic data releases, particularly inflation data, could affect Bitcoin price in the coming days.
Bitcoin (BTC) has shown remarkable stability, maintaining a price above $60,550 over the past four months, despite widespread fears of further crypto market downturns. On Wednesday, the leading cryptocurrency traded at approximately $61,377, having recently dipped from a high of around $70,000.
Could this be a buying opportunity, or is a deeper correction on the horizon? Read on to explore the latest on Bitcoin’s price action and what experts are saying about what’s next.
Cash Flow Dynamics in Bitcoin ETFs
In a positive turn, U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed a small yet significant cash inflow of $31 million after more than two weeks of sustained outflows. Fidelity’s FBTC and Bitwise-backed BITB saw cash inflows of about $49 million and $15 million, respectively.
Conversely, Grayscale’s GBTC reported a cash outflow of approximately $30 million on Tuesday, while BlackRock’s IBIT showed no cash flow activity.
Signs of a Local Bottom?
CryptoQuant’s Gustavo Faria suggests that Bitcoin’s current market structure indicates a potential local bottom. Analyzing on-chain data, CryptoQuant observed that short-term Bitcoin holders are experiencing negative average profitability, a common indicator of a local bottom.
Additionally, the Bitcoin futures market has seen a decline of about $3 billion in open interest over the past three weeks, accompanied by near-zero funding rates.
A Look at the Economics
Investors are eagerly awaiting crucial U.S. economic data, which will provide a clearer picture of the economic outlook. On Thursday, the U.S. GDP and initial jobless claims data will be released, followed by inflation data (PCE) on Friday.
“A significant factor influencing price action in recent months has been U.S. macroeconomic data, given the uncertainty about the future of American monetary policy, which affects investors’ risk appetite,”
CryptoQuant
The Road Ahead for Bitcoin
Bitcoin’s price could likely close the month around $61,000. However, if it consistently closes below $60,000 in the coming weeks, the flagship cryptocurrency might drop towards $50,000. On the upside, the weekly Relative Strength Index (RSI) is approaching the 50 percent level, which could signal a market rebound ahead.
The experts are weighing in, but what do YOU think? Will Bitcoin rebound or head towards $50k?
Also Read: Binance Delists Major Cryptocurrencies: Impact on SHIB, LINK, and Other Altcoins
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