The Bitcoin [BTC] recovery in March and April restored some positive sentiment in the market, but the retracement below $60k in early June dented this optimism once again.
The $60k-$70k was a key demand zone, both from a technical standpoint and based on on-chain metrics’ findings.
AMBCrypto reported that 20% of the BTC circulating supply has changed hands within this key structural support zone. It was argued that this was one of the largest transfers from weak to strong hands in Bitcoin’s history.
Forced Bitcoin selling is not over yet
Long-term holders have been steadily offloading their tokens. At the same time, exchange Bitcoin reserves continued to fall, suggesting fewer coins were readily available to be sold.
Strategy added to their holdings once again last week, but there was evidence that whale wallets were treating the $61.5k zone as a critical buy zone.
In a post on X, Santiment pointed out that 35.82% of the Bitcoin supply is held by whale wallets with at least 1k BTC. Their holdings have climbed to 7.17 million coins, the highest amount in three months.
Whale accumulation during times of price distress was an encouraging sight, but by itself, it might not be enough to reverse the long-term downtrend. AMBCrypto had reported that miner stress has not eased, and the cycle’s extreme bear phase has not been reached yet either.
Crypto analyst Axel Adler Jr. drew attention to how gold and Bitcoin had different reactions to the Fed’s decision not to move interest rates. Gold fell to $4,220 but quickly reclaimed $4,300.
Meanwhile, beleaguered Bitcoin was testing the $64k short-term support zone.
Capital prefers the defensive asset over the risk asset, the analyst noted. If gold continues to be bought while BTC hovers around the $63.5k lows, it would be a confirmation of relative weakness.
Final Summary
- Increased selling from miners, steady BTC Spot ETF outflows, and selling from large holders reflected mounting market pessimism.
- The bounce from the $60k floor was fragile, and the rejection from $67k and a wave of steady selling could send prices reeling once more.