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Bitcoin has suffered rejection from the upper supply of $72K and has slipped near the $67K for the second time this month. The BTC price has is stuck in the range formed and has been struggling to find a clear direction.
At the time of writing, the Bitcoin price seemed to be stabilizing near the lower boundary, recording a swift intraday gain of 0.61%. Bitcoin leads the cryptocurrency market with a 54% dominance and 1.32 Trillion market capitalization.
Some analysts are attributing this Bitcoin price struggle as the post halving capitulation by the BTC miners.
Why is Bitcoin Price Struggling?
Despite the positive trend in the equity markets, Bitcoin is struggling to gain any significant upward traction this month. This lack of momentum in BTC price can largely be traced back to the effects of the recent halving event that happened in April.
The halving has led to a situation where miners are facing increased operational costs while the rewards for their efforts have decreased. As a result, many miners are forced to sell their BTC holdings to cover expenses, leading to a substantial increase in the supply of BTC in the market.
Marathon Digital, the largest #Bitcoin mining company, sold 1K $BTC yesterday, likely to cover expenses, marking the highest daily OTC volume since late March.
h/t @jjcmoreno pic.twitter.com/jM2C2TN8sN
— Ki Young Ju (@ki_young_ju) June 11, 2024
Recently, Marathon Digital, which is the largest Bitcoin mining company sold 1K Bitcoins, likely to cover their expenses. The selloff marked the highest daily OTC transaction volume since late March.
What’s Next for Bitcoin?
In recent sessions, Bitcoin has found itself stuck in a range of $72K to $67K. BTC is unable to decide a clear momentum as of now. The $72K level has been acting as a strong hurdle for the bulls to surpass.
Few analysts are anticipating the formation of a local top while others are foreseeing a buy on dip opportunity before the price lifts off. Currently, BTC price may maintain its consolidation until it is stuck in the range.
Now, a breakout or breakdown may indicate a clear direction. The breakout above the $72K may push the price towards the record highs. whereas, the breakdown below may validate the local top formation may price may correct more.
Conclusion
Bitcoin price is oscillating between $67K (support) and $72K (resistance) and has been unable to find a clear trend as of now. The halving event in April has increased miners’ operational costs and decreased rewards causing them to sell BTC which has resulted in an increased supply. Marathon Digital’s sale of 1K Bitcoins exemplifies this pressure.
Moreover, the analysts are split, with some seeing a potential local top while others viewing it as a buying opportunity. The market awaits a decisive move: a breakout above $72K could signal a new high, while a drop below $67K might suggest further corrections.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
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