The price of Bitcoin witnessed a decline of more than 6% over the past week, as successive corrections led to the price of the currency temporarily falling below the $60,000 level.
Despite a partial recovery to around $61,500, this recovery has slowed, raising concerns among investors about the possibility of further losses.
Concerns were renewed after the US government transferred 3,940 bitcoins to Coinbase Prime after receiving approval to liquidate them.
Bitcoin's defense of the $60,000 level:
On June 26, the US government transferred 3,940 bitcoins to Coinbase Prime, the institutional trading arm of Coinbase, which had previously been seized from convicted drug dealer Basmeet Singh.
The transfer has raised concerns that the government may sell part of its Bitcoin reserves, which could add downward pressure on the already struggling Bitcoin price.
According to the latest analysis from QCP Capital, Bitcoin has effectively maintained the $60,000 support level despite downward pressure.
There are two main reasons for the currency price to remain above the $60,000 level:
Slow government transfers: The pace of transfers from government wallets to exchanges has slowed, with only 250 Bitcoins being sent yesterday. This may signal the end of the current selling system.
Bitcoin Net Outflows: Bitcoin ETFs saw net outflows of $52.4 million over the past two days after seven straight days of outflows.
Based on these factors, QCP Capital’s analysis believes that the market is ready to accumulate Bitcoin.
While, according to the latest “CryptoQuant” research, there are indicators and signs indicating the formation of a local bottom for Bitcoin.
The same analysis indicated that open interest (OI) fell by $3 billion in the futures market as a result of the long liquidation.
Funding rates for perpetual contracts also approached zero, indicating a balanced market with a healthier and less optimistic price structure.
The recent drop in Bitcoin's price below $60,000 attracted many buyers, with holders controlling 0.1% of the total Bitcoin supply adding 7,130 BTC to their inventory in just one day, equivalent to about $436 million.
This accumulation also represents the highest net inflows since late May, which may indicate investor confidence in the price rising from here on out.
