As a researcher with a background in cryptocurrencies, I have seen firsthand how volatile and unpredictable the market can be. The recent decline of over 6% for Bitcoin within a week, pushing it below $60,000, has caused understandable concern among investors. However, based on the latest analysis from reputable sources like QCP Capital and CryptoQuant, I believe that Bitcoin may be able to defend this support level.


Over the last seven days, Bitcoin experienced a drop of over 6%, causing it to momentarily dip beneath the $60,000 mark.

As an analyst, I’ve observed that Bitcoin’s price has bounced back since dipping below $61,500. However, its progress seems to have halted at this level, leaving investors apprehensive about potential declines. This uneasiness intensified when the US government moved 3,940 BTC to Coinbase Prime after obtaining authorization for liquidation.

However, QCP Capital believes that bitcoin will be able to defend the $60,000 support.

Bitcoin’s $60K Defense

On June 26th, Coinbase Prime, the institutional branch of Coinbase, received a transfer of 3,940 Bitcoin from the US government. These Bitcoin had previously been confiscated from a convicted drug trafficker named Basmeet Singh during the course of this year.

The government’s decision to transfer some of its Bitcoin holdings has raised worries among investors about the possibility of a sale, which could further depress the cryptocurrency’s price that is currently experiencing difficulty in maintaining an upward trend.

Based on QCP Capital’s most recent assessment, bitcoin has successfully held its ground above the significant support of $60,000, defying considerable bearish forces. This resilience can be attributed to two key factors:

Yesterday, the German government wallet transferred just 250 Bitcoins to exchanges. This might indicate that they are considering ending their current Bitcoin selling program.

Over the last two days, Bitcoin ETFs saw a total withdrawal of $52.4 million. Following seven straight days of such outflows, QCP Capital believes that current market conditions suggest an opportunity for buying bitcoin.

Such an interpretation could also signify that the asset is now preparing from a leg up.

Bitcoin Preparing For Leg Up?

As a researcher studying the cryptocurrency market, I’ve recently come across some intriguing findings from CryptoQuant. Their analysis suggested that the leading asset may have formed a local bottom based on certain on-chain metrics. Specifically, they noted a decrease of $3 billion in open interest (OI) in the futures market due to long liquidations. Furthermore, funding rates for perpetual contracts approached zero, signaling a more balanced market with less extreme price expectations.

This week, the dip in Bitcoin’s price beneath $60,000 brought forth numerous buyers. Intriguingly, holders with 0.1% of the entire Bitcoin supply bought an additional 7,130 BTC within a day. The value of these newly acquired Bitcoins amounts to approximately $436 million. Notably, this accumulation represented the most significant net inflows since late May, potentially indicating that investors are optimistic about Bitcoin’s price continuing to rise.

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2024-06-28 08:42