BTC▼$62,455.00 price fell below $67,000 as analysts pointed to shrinking demand, ETF outflows and weaker spot buying to explain why Bitcoin is dropping.
Bitcoin price today slipped below the $67,000 threshold, bringing the April support area back into view. Traders are now trying to figure out whether this is just another flush lower or the start of a deeper summer selloff.
As of press time, Bitcoin trades at around $66,863, down 6.4% on the day and back near levels last seen in early April, according to Bitcoin Foundation’s price tracking page. Its market capitalization also fell to about $1.3 trillion.
Julio Moreno, head of research at blockchain CryptoQuant, a blockchain analytics firm, suggested in an X post on June 2 that declining demand is the key reason for Bitcoin’s ongoing correction.
“The ongoing price correction is completely related to Bitcoin demand conditions and has nothing to do with stocks (all-time highs), oil or macro (e.g. manufacturing activity is growing faster),” Moreno said.
Meanwhile, blockchain analytics firm Glassnode thinks that Bitcoin has been hit by weaker spot demand, ETF outflows and softer speculative positioning.
“BTC trades at $71.3K under growing pressure. Sellers dominate spot, ETF outflows accelerate to $1.3B, and fresh capital has stalled,” Glassnode said in its Market Pulse update. “Structure has broken and momentum favours the downside near-term.”
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Stress Is Present
Glassnode noted in another X post that long-term Bitcoin holders were already dealing with 15.5% in relative unrealized losses when BTC traded around $69,500, meaning their stress has likely increased now that Bitcoin trades lower.
At the same time, Glassnode reiterated that the number of long-term BTC holders hasn’t yet reached the pain levels usually associated with lows for the cycle. Therefore, despite the price action, it left a somewhat more open scenario.
“Stress is present, but the long-term holder base remains far from the levels of pain that have historically marked cycle lows,” the analysts added.
Benjamin Cowen, founder of crypto market research firm Into The Cryptoverse, suggested in an X post that one “plausible path” is for Bitcoin to form a low in June, similar to June 2018 and June 2022.
Right now, Bitcoin is trading close to the same support level that saw some buying action in April. A breakout of this level will contain the pullback. Otherwise, it will confirm weakening demand.
Read more: Bitcoin Price Falls Near $70K As ETF Outflows Hit Sentiment
