Bitcoin (BTC) price must defend the support level of around $60K in the coming weeks to avoid further crypto capitulation.
The total cryptocurrency market cap slipped more than 2 percent in the past 24 hours to hover around $2.37 trillion, following the Bitcoin (BTC) price dip below $61K again. The flagship coin attempted to rally beyond $64K in the past few days in no vain after recently retesting the support level around $60K. According to the latest market data, Bitcoin price declined around 2.8 percent in the last 24 hours to trade at about $60,865 on Wednesday during the London session.
The sudden Bitcoin price drop resulted in heavy crypto liquidations of about $121 million in the past 24 hours.
US Spot Bitcoin ETFs Turns Negative Again
As Coinspeaker pointed out, the United States spot Bitcoin exchange-traded funds (ETFs) had registered gradual cash inflows in the past few days. However, the recent streak of cash inflow was negated on Tuesday after the Grayscale Bitcoin Trust (GBTC) registered a net outflow of about $32 million. Additionally, the Bitwise Bitcoin ETF (BITB) recorded a net cash outflow of about $7 million on Tuesday.
Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) had a net cash inflow of about $14 million on Tuesday, after remaining largely quiet. Other notable cash inflows on Tuesday included the Fidelity Wise Origin Bitcoin Fund (FBTC) with around $5 million, the Ark 21Shares Bitcoin ETF (ARKB) with about $2 million, and the VanEck Bitcoin Trust (HODL) with around $4 million.
The rest of the US spot Bitcoin ETFs registered a net zero cash flow on Tuesday.
Rising Network Activity
After closing the first half of the year with a bullish outlook, more crypto investors are betting on a further uptrend in the coming quarters. More than two months since the fourth Bitcoin halving, on-chain data shows retail traders have begun showing interest.
According to on-chain data provided by Santiment, Bitcoin’s active addresses spiked to more than 894K in the past week, the highest level since April. Remarkably, the number of new Bitcoin addresses surged by more than 432K in the past few days, signaling the emergence of new traders.
#Bitcoin recently experienced its highest spike in active addresses since early April, reaching a total of 894,980 active $BTC addresses, as shown in data from @santimentfeed! pic.twitter.com/04OoWnCG3B
— Ali (@ali_charts) July 2, 2024
More crypto investors are returning after a choppy May and June to take advantage of the re-accumulation period in the next few weeks.
Midterm Prediction
Bitcoin price has been stuck in a parallel channel, between $73K and $60K, in the past four months. After failing to burst through the resistance range between $64K and $66K, Bitcoin price is now retracing back to the lower border.
While it is safe to assume that Bitcoin price is in a macro bullish trend, the flagship coin may bleed in the near term before rebounding to a new all-time high.
Could a significant bounce for $BTC be on the horizon? 🤔 pic.twitter.com/QKHkJI3cms
— Bitcoinsensus (@Bitcoinsensus) July 3, 2024
According to some crypto analysts, the upcoming listing of spot Ether ETFs in the United States will spell a bearish outlook for Bitcoin in the near term. Moreover, Bitcoin dominance has signaled an inevitable reversal, which will trigger the much-anticipated altseason.
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