Amid the bearish sentiment triggered by the SEC, Bitcoin seems to have found peculiar stability at the $26,000 mark, leading many market watchers to question: is this the calm before the bull run? Or could it signal a protracted bear market? The SEC’s legal action against crypto giants Binance and Coinbase has sparked a bearish trend in Bitcoin. Consequently, Bitcoin’s price has remarkably stabilized around $26,000, injecting a dose of uncertainty into its usually volatile market.
Bitcoin Witnesses a High Demand from Investors
For the first time since April 2021, Bitcoin Dominance (BTC.D) soared to 49.2% last week. As investors, wary of the troubled altcoin market, redirect their focus, there has been a noticeable increase in Bitcoin’s demand on cryptocurrency exchanges.
For the first time in two years, Bitcoin Dominance (BTC.D) surged, adding two percentage points since June 5 to nearly touch 49.30%. This metric gauges Bitcoin’s market capitalization as a percentage of the total worldwide crypto market value.
A significant increase in BTC.D suggests a pivot in market preference and capital from altcoins towards Bitcoin, indicating a waning interest in altcoins as Bitcoin continues to capture market attention.
However, there’s a bearish outlook, too, as miners are not profitable after the recent decline. Recent on-chain data suggests that Bitcoin miners have been offloading their holdings at an unprecedented pace, a phenomenon that could negatively impact Bitcoin’s price.
Glassnode, an on-chain analytics provider, reports that miner exchange inflows recently skyrocketed to $70 million. This metric measures the total quantity of Bitcoin that miners transfer to centralized exchange wallets.
This surge aligns with a gradual decline in the cryptocurrency’s value, possibly suggesting that the current market conditions are triggering miners to hastily liquidate their assets. Such behavior could establish a barrier to Bitcoin’s price, hindering its ability to surpass $26K.
Further Consolidation Before a Clear Move
Bitcoin experienced a decline from its EMA20 trend line after facing intense trouble from bears. However, a slight advantage is that the price did not drop below $25,757, suggesting that buyers are attracted to these lower prices.
As of writing, Bitcoin trades at $25,827, increasing over 0.27% in the last 24 hours.
Bulls are predicted to make another effort to push the price beyond $26,173. If this happens, it indicates a decrease in the selling pressure.
The price of BTC could potentially rise to meet the 50-day EMA at $26,429 and later reach the resistance line at $27.4K. It’s expected that the bears will staunchly defend this level.
There’s also a chance that the price may fall from its current position. In such a scenario, the bears will aim to consolidate their dominance by driving the price down to $25,400. It’s likely that buyers will do their utmost to safeguard this level.
Source: https://coinpedia.org/bitcoin/is-bitcoins-consolidation-at-26k-a-calm-before-the-bull-run-what-to-expect-from-btc-price-next/