(Kitco News) – Cryptocurrency prices ended the week in the red after hopes for multiple rate cuts in 2024 were dashed by the Federal Reserve on Wednesday, while struggles in the European stock market also gave U.S. investors reason to pause.
“Bitcoin (BTC) experienced a significant decline, dropping over 7% in the past week, while the equity market reached new highs,” said analysts at Secure Digital Markets. “Various crypto-specific factors, such as profit-taking by holders and increased selling by miners, are contributing to the subdued BTC price.”
“Data from analytics firm CryptoQuant indicates a decrease in the number of BTC inactive for at least 12 months and two years, suggesting that holders are realizing profits as the Bitcoin price remains near its peak,” they noted. “Additionally, on June 10, miners sold at least 1,200 BTC via OTC, marking the highest single-day volume in over two months.”
Outflows from U.S.-listed spot BTC exchange-traded funds (ETFs) also put pressure on Bitcoin’s price as $226.6 million flowed out of ETF coffers, the highest amount in over two weeks.
“Currently, Bitcoin prices are stabilizing around their 50-day moving average near $66,000, with potential to rebound to the 20-day moving average around $69,000,” the analysts said. “However, a downward break from this level could trigger bearish signals, pushing BTC towards $63,000 and possibly $60,000.”
BTC/USD Chart by TradingView
Stocks also declined in trading on Friday following a week-long rally that boosted the S&P 500 and Nasdaq to new record highs. The S&P and Dow finished the day in the red, down 0.17% and 0.29%, respectively, while the Dow managed to battle its way to a positive close of 0.12% in the final minutes of the session.
Patience is advised
Amid the deepening pullback for Bitcoin, most analysts agree that the pain is nearing its maximum, and in the future, the latest struggles will be but a faint memory.
#BTC
Months from now, you won't remember this pullback
Nobody will remember this Re-Accumulation period
But everybody will remember the Parabolic Phase that comes afterwards$BTC #Crypto #Bitcoin— Rekt Capital (@rektcapital) June 14, 2024
Market analyst ElonTrades posted the following chart showing Bitcoin's price action in late 2020.
“It retraced 15%, pumped, then retraced another 10% before liftoff,” he said. “Not much different than what's happening today, other than the amount of time it's lingered around previous ATHs; ~21 days vs ~100 days. I think that's part of the reason that people think this will be a slightly less explosive and more drawn-out cycle.”
CryptoCapo said “65k is support until proven otherwise,” in his Telegram group. “If it holds we should expect another move up.”
Always one to hedge his predictions, CryptoCapo noted that “Price acceptance below 65k = 58k-60k (previous liquidity zone).”
And market analyst ProfessorAstrones worked to keep bullish hopes alive, posting the following chart highlighting the potential formation of a cup and handle on the Bitcoin chart that could see King Crypto rally above $90,000.
$BTC
It always seems impossible until it's done
See you at the magnet pic.twitter.com/4C9kfrNs5j— ProfessorAstrones (@Astrones2) June 14, 2024
At the time of writing, Bitcoin trades at $65,821, a decrease of 1.24% on the 24-hour chart.
Traders flee the altcoin market
Aside from a handful of tokens, the top 200 altcoins were a sea of red as traders fled to the safety of stablecoins amid Bitcoin’s struggles below $66,000.
Daily cryptocurrency market performance. Source: Coin360
RocketPool (RPL) managed to buck the prevailing trend to record a gain of 27.9%, while Notcoin (NOT) climbed 12%, and io.net (IO) gained 5.9%. Mog Coin (MOG) led the losers with a decline of 13.8%, followed by a loss of 13.1% for Echelon Prime (PRIME), and a 12.9% drawdown for cat in a dogs world (MEW).
The overall cryptocurrency market cap now stands at $2.38 trillion, and Bitcoin’s dominance rate is 54.4%.
