Key Points
- Bitcoin’s price has fallen below the $70,000 mark, with over 1 million addresses acquiring BTC at the current price range.
- On-chain metrics suggest that Bitcoin might be able to maintain this price zone and potentially trigger another positive run.
Bitcoin’s [BTC] rally seems to have paused, with its price now falling below the $70,000 price zone, which was previously acting as strong support.
However, other on-chain metrics suggest that BTC might be able to hold this price zone and possibly ignite another positive run.
Bitcoin’s Price Dip
Analysis of Bitcoin’s price trend showed a 1.97% decline on the 7th of June. This considerable drop pulled its price away from the $70,000 mark.
Before this fall, BTC had seen consecutive uptrends that brought it into the $70,000 range, suggesting it was gaining momentum to exceed this threshold.
However, the decline between the 6th and the 8th of June brought its price down to around $69,300.
At the time of writing, BTC was still trading in the $69,000 price range, with a slight increase to around $69,400. The chart indicated that its overall trend remained positive.
The Relative Strength Index (RSI) was above 55, indicating a bullish trend.
Moreover, Bitcoin was trading above its short moving average at press time, providing immediate support at around the $66,000 price range.
Strong Support for Bitcoin
Bitcoin was also seeing robust support between the $69,380 and $67,350 price zones, with a significant accumulation volume in this range.
The data revealed that approximately 1.97 million addresses acquired around 964,000 BTC within this range.
At the current price, this equates to about $67 billion spent on accumulating Bitcoin. This strong support suggests that BTC needs to stay firm at this level to maintain any positive trend.
Furthermore, analysis showed that per Bitcoin’s supply on exchanges, there was an increase in BTC withdrawals over the last few days.
According to Glassnode, between the 1st and the 8th of June, over 21,000 BTC were withdrawn from exchanges.
On the 1st of June, the volume of BTC on exchanges was around 2.332 million. At the time of writing, that volume had declined to approximately 2.311 million.
This implies that approximately $1.57 billion worth of BTC has been withdrawn from exchanges in the last week.
This is a positive signal for Bitcoin, as it suggests there is no significant influx of BTC that could crash the price across exchanges.
As a result, Bitcoin can maintain its support level, potentially leading to a positive price trend soon.
