The Bitcoin (BTC) price has been navigating a critical juncture as it is stuck within a strong support zone. Moreover, nearly 2 million Bitcoin addresses have acquired their BTC reserve within this range. Their investment is nearing breakeven owing to the latest price decline with the BTC value dropping to $69,000 level.
BTC Price To Dip Further?
The BTC price currently lies in the strong support range of $69,380 and $67,350. Crypto analyst Ali Martinez highlighted the significance of this range, where approximately 1.97 million addresses acquired 964,000 BTC. The stability of Bitcoin’s price within this zone is crucial to sustaining its upward momentum.
However, recent market movements have put this support to the test. In the wake of a substantial market selloff, Bitcoin’s value extended to the $69,300 level, falling from a price of over $71,500. This slump came after the US jobs data chimed in.
The employment data could impact the Federal Reserve’s decision on rate cuts, which spread pessimism through the crypto community. Hence, the critical concern now is whether Bitcoin can maintain its footing above $67,000, a threshold that if breached, could signal further declines.
The recent market dynamics have not been favorable for long positions. Within the last 24 hours, the cryptocurrency market witnessed total liquidations amounting to $65.95 million, according to Coinglass. Furthermore, a significant portion of this, approximately $56.86 million, was attributed to long positions.
This overwhelming liquidation of long positions signals potential bearish sentiment among traders, further exacerbating concerns about Bitcoin’s price stability. The potential for a further dip below $67,000 looms large, particularly if the addresses holding 964,000 BTC lose breakeven point and decide to offload their holdings.
Such a move could trigger a cascading effect, prompting additional selloffs and pushing BTC price lower. The breakeven point for these holders is crucial; any movement below this level could erode their confidence and lead to increased selling pressure.
Also Read: Why is Bitcoin Price Falling Sharply Today
ETF Inflows To The Rescue
Despite the bearish indicators, there are positive developments that could bolster Bitcoin’s resilience. The Spot Bitcoin ETFs have continued to attract substantial inflows, providing a counterbalance to the selling pressure. On Friday, June 7, these ETFs saw an influx of $135 million, marking the longest inflow streak of 19 days.
This continuous demand through global Bitcoin ETFs, including those in Hong Kong and Australia, could play a pivotal role in stabilizing Bitcoin’s price. Moreover, the global ETPs hold over 1 million BTC, catalyzing a potential supply shock. Furthermore, the ongoing inflows into Bitcoin ETFs suggest sustained interest and confidence among institutional investors.
This demand could provide a much-needed buffer against the market’s downward pressure. At press time, the BTC price was down by 3.52% to $69,375.98 on Saturday, June 8 with a market capitalization of $1.36 trillion. On the contrary, the 24-hour trading volume jumped 12.57% to $31.39 billion.
Also Read: “Inflation Is A Hidden Tax on Your Money” Bitcoin Exchange Knocks Fiat in New Ad
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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