 ▲ Bitcoin (BTC) |
Cryptocurrency leader Bitcoin (BTC) has been moving sideways within the range of about $5,500 for the past three weeks, and is trading at about $66,700 based on Coin Market Cap as of June 14 (Korean time).
In particular, since May 21, it has been fluctuating between $72,000, which acts as a resistance level, and $66,350, which acts as a support level. There have been repeated attempts to break the all-time high of about $73,800, but so far have failed.
Cointelegraph diagnosed, “The main reasons why Bitcoin’s price has been moving sideways in recent weeks are the ‘cash-and-carry arbitrage strategy’, the stability of whale holdings, and technical patterns.” .
The media said, "The cash and carry strategy is to buy Bitcoin in the spot market and sell it in the futures market at the same time. The market price stabilizes due to the combination of long positions in the US-based Bitcoin ETF and short positions in CME futures. In particular, the holdings of large Bitcoin whales are offsetting each other, creating a balance between supply and demand.”
He continued, “From a technical perspective, Bitcoin is in the stage of forming a handle in a cup-and-handle pattern, which suggests that it could turn bullish if the price breaks through the resistance level of around $71,500. Currently, Bit The coin's daily relative strength index (RSI) is in the neutral zone at 48.43, indicating a stalemate between bears and bulls regarding the direction of the market. If the cup-and-handle pattern is successfully formed, Bitcoin's price will rise in July. “It could rise to about $88,000, but if it retreats from the resistance level, there is a risk of it falling to the current support level of $67,000,” he predicted.
Meanwhile, CryptoQuant said through Selling through over-the-counter (OTC) transactions also surged, with miners selling 1,200 BTC through OTC, the highest daily trading volume in over two months, at 1,400, or 8% of the holding volume. The reason for this continued selling of BTC is that miners' profits plummeted after the halving, with miners' daily profits plummeting by 55% from the peak in March ($78 million). “The fact that miner profits are decreasing and the hash rate remains high suggests that the BTC price is nearing the bottom.”
