Bitcoin (BTC) has pulled back sharply after a failed attempt to break above the $70,000 resistance level. The cryptocurrency is currently trading around $66,500, down nearly 6% from its recent high.
The rapid price decline comes after a $2 billion Bitcoin transfer from a wallet associated with the U.S. government, which contrasted with recent promises from presidential candidates to accumulate Bitcoin.
Crypto analysts have offered differing perspectives on Bitcoin’s near-term outlook. While some expect a short-term consolidation period before a potential upward move, others warn of a potential decline towards the $60,000 level.
William Clemente of Reflexivity predicts a period of “summer ranging” before a potential upward trend, while Keith Alan of Material Indicators emphasizes the importance of reclaiming the $69,000 level as a prerequisite for a new all-time high.
On the other hand, trader Roman anticipates a potential decline to $60,000, which could trigger a short squeeze and subsequent price recovery. Mark Cullen is focusing on whether Bitcoin will hold the current support level or continue to decline towards the lower end of its trading range.
On-chain data from CryptoQuant suggests a potential bullish scenario, as the average Bitcoin withdrawal amount from exchanges has been increasing. This could indicate that investors are accumulating Bitcoin in anticipation of a future price rise.
The cryptocurrency market remains highly volatile, and Bitcoin’s price action is closely watched by investors. The ability to hold the $66,500 support level will be crucial in determining the short-term trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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