Key Points
- Bitcoin’s (BTC) price dips under $67K, hinting at a potential drop to $60K, amidst increased whale activity.
- The recent price drop has led to a surge in crowd-buying interest and heightened selling pressure from Bitcoin miners.
The price of Bitcoin (BTC) has seen a 1.1% decrease in the last 24 hours, briefly dipping below $67K during the early London session on Friday.
This top-tier cryptocurrency has faced significant resistance between $72K and $73K in the previous four months, leading to mixed reactions among traders.
Increased Interest in Bitcoin
According to on-chain data analysis from the market intelligence platform Santiment, the recent drop in Bitcoin’s price below $67K has led to a sharp increase in crowd-buying interest.
This surge in buying the dip narrative has resulted in a significant increase in greed and FOMO traders, who are anticipating continued bullish sentiments.
Moreover, recent interest rate cuts in Canada and from the European Central Bank (ECB) have raised the possibility of a similar scenario in the United States later this year.
Heightened Selling Pressure on Bitcoin
CryptoQuant’s on-chain data analysis indicates that Bitcoin miners have increased exchange deposits in the past few days, indicating increased selling pressure.
This increased selling pressure from Bitcoin miners has coincided with renewed cash outflows from United States-based spot BTC ETFs.
As a result, the rate of cash outflows from spot Bitcoin ETFs has significantly increased across the board, leading to investor fears of a further market drop.
Bull Cycle Losing Momentum?
Bitcoin’s price performance has been significantly weaker compared to the stock and bond market this quarter, suggesting that the crypto bullish outlook is gradually losing momentum.
Jurrien Timmer, the director of global macro at Fidelity Investments, asserts that despite slowed adoption in recent months, Bitcoin remains an exponential gold and a superior option for storing value.
However, Timmer notes that the adoption rate of Bitcoin needs to grow further in the near term to fuel the bullish narrative to a new all-time high.
Moreover, the divergence between Bitcoin’s price and its adoption curve has continued to widen in recent weeks, indicating increased crypto cash rotation.
Bitcoin dominance is nearing a major resistance level, coupled with a falling divergence on the weekly Relative Strength Index (RSI).
Midterm BTC Price Targets
From a technical standpoint, Bitcoin’s price is faced with a significant uphill challenge as the daily and weekly Relative Strength Index (RSI) signals a further downward trend.
Veteran trader Peter Brandt asserts that Bitcoin’s price must defend the support level around $66K to prevent further capitulation towards $60K and $48K.
On a macro scale, Brandt argues that based on exponential decay, Bitcoin’s price should have reached a cycle top. However, according to Brandt’s Hump Slump Dump and Pump (HSDP) indicator, Bitcoin’s price could easily rally to a new ATH in the near term.
