Is Bitcoin's Consolidation at $26K a Calm Before the Bull Run? What to Expect from BTC Price Next

Is Bitcoin’s Consolidation at $26K a Calm Before the Bull Run? What to Expect from BTC Price Next

Time Stamp: June 12, 2023 10:55 AM
Source Node: 2718114

Amid the bearish sentiment triggered by the SEC, Bitcoin seems to have found peculiar stability at the $26,000 mark, leading many market watchers to question: is this the calm before the bull run? Or could it signal a protracted bear market? The SEC’s legal action against crypto giants Binance and Coinbase has sparked a bearish trend in Bitcoin. Consequently, Bitcoin’s price has remarkably stabilized around $26,000, injecting a dose of uncertainty into its usually volatile market.

Bitcoin Witnesses a High Demand from Investors 

For the first time since April 2021, Bitcoin Dominance (BTC.D) soared to 49.2% last week. As investors, wary of the troubled altcoin market, redirect their focus, there has been a noticeable increase in Bitcoin’s demand on cryptocurrency exchanges.

For the first time in two years, Bitcoin Dominance (BTC.D) surged, adding two percentage points since June 5 to nearly touch 49.30%. This metric gauges Bitcoin’s market capitalization as a percentage of the total worldwide crypto market value. 

A significant increase in BTC.D suggests a pivot in market preference and capital from altcoins towards Bitcoin, indicating a waning interest in altcoins as Bitcoin continues to capture market attention.

However, there’s a bearish outlook, too, as miners are not profitable after the recent decline. Recent on-chain data suggests that Bitcoin miners have been offloading their holdings at an unprecedented pace, a phenomenon that could negatively impact Bitcoin’s price. 

Glassnode, an on-chain analytics provider, reports that miner exchange inflows recently skyrocketed to $70 million. This metric measures the total quantity of Bitcoin that miners transfer to centralized exchange wallets. 

This surge aligns with a gradual decline in the cryptocurrency’s value, possibly suggesting that the current market conditions are triggering miners to hastily liquidate their assets. Such behavior could establish a barrier to Bitcoin’s price, hindering its ability to surpass $26K.

Further Consolidation Before a Clear Move

Bitcoin experienced a decline from its EMA20 trend line after facing intense trouble from bears. However, a slight advantage is that the price did not drop below $25,757, suggesting that buyers are attracted to these lower prices.  

As of writing, Bitcoin trades at $25,827, increasing over 0.27% in the last 24 hours.

Bulls are predicted to make another effort to push the price beyond $26,173. If this happens, it indicates a decrease in the selling pressure.

The price of BTC could potentially rise to meet the 50-day EMA at $26,429 and later reach the resistance line at $27.4K. It’s expected that the bears will staunchly defend this level.

There’s also a chance that the price may fall from its current position. In such a scenario, the bears will aim to consolidate their dominance by driving the price down to $25,400. It’s likely that buyers will do their utmost to safeguard this level.

Time Stamp:

More from Coinpedia