Bitcoin

Bitcoin may not remain below $70K for long, here’s why

Traders spend over $67 billion to accumulate Bitcoin, making its current price its biggest accumulation zone.

Published

6 months ago

June 10, 2024

Adewale Olarinde

Edited By: Saman Waris

Bitcoin continued to trade below $70,000.
Over 1 million addresses acquired BTC at the current price range.

Bitcoin’s [BTC] rally has stalled, and it has now fallen below the $70,000 price zone, which serves as strong support.

However, other on-chain metrics suggested that BTC might be able to maintain this price zone and potentially spark another positive run.

Bitcoin dips below $70K

AMBCrypto’s analysis of Bitcoin’s price trend revealed a 1.97% decline on the 7th of June. This significant drop pulled its price away from the $70,000 zone.

Before the decline, BTC experienced consecutive uptrends that brought it into the $70,000 range, suggesting it was building momentum to surpass this threshold.

However, the decline between the 6th to the 8th of June lowered its price to around $69,300.

As of this writing, BTC was still trading in the $69,000 price range, with a slight increase to around $69,400. The chart showed that its overall trend remained positive.

The Relative Strength Index (RSI) was above 55, which indicated a bullish trend.

Source: TradingView

Additionally, Bitcoin was trading above its short moving average (yellow line) at press time, providing immediate support at around the $66,000 price range.

Bitcoin needs to hold steady in this zone

Bitcoin was also seeing strong support between the $69,380 and $67,350 price zones, with a significant accumulation volume in this range.

The data showed 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 hold firmly at this level to sustain any positive trend.

More BTCs leave exchanges

AMBCrypto’s analysis showed that per Bitcoin’s supply on exchanges, there was an increase in BTC withdrawals over the last few days.

Also, according to Glassnode, between the 1st and the 8th of June, over 21,000 BTC were withdrawn from exchanges.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. As of this writing, that volume had declined to approximately 2.311 million.