Bitcoin’s recent decline from $70,000 to $58,500 appears to have temporarily halted, as the price has experienced a recovery and returned to the $62,000 level. However, today the price has once again begun to decrease.
In response to the latest US macroeconomic data, Bitcoin’s price did not show significant movement. The Core Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve’s preferred measure of inflation, increased by 2.6% annually in May, reaching its lowest level since March 2021. Monthly reviews also revealed a slow increase of 0.1% in the core PCE, the slowest rise since November 2023. Despite these developments, Bitcoin continues to find buyers at the $60,000 level.
In the US, there has been a significant transfer of approximately 11.84 BTC worth about $726,000 from government-related addresses to new addresses. Such transactions have resulted in larger cryptocurrency transfers.
Leading analysts predict that Bitcoin’s price is approaching the $60,000 level and may potentially decline further. If the price drops to these levels, a significant decline could occur, with the price falling to $54,000. The CryptoQuant chart shows that Bitcoin’s critical support level is seen at the $56,000 region, and breaking this level may lead to a sharper decline. Analyst Willy Woo suggests that the recent drop in prices to the $58,000 level is due to the pressure from positions awaiting liquidation and miners selling to reduce their expenses.
The decrease in demand from long-term investors across the country is also believed to be contributing to Bitcoin’s price decline. BTC holders with long-term expectations have shown a noticeable decrease in demand. According to data from IntoTheBlock, approximately 160,000 BTC worth around $10 billion were sold in May, and an additional 40,000 BTC were observed to have decreased from long-term investors’ wallets in June. These declines are believed to be parallel to the price fluctuations in BTC and are likely impacting the price decline.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.