Bitcoin’s price has seen a 7% rebound after hitting a two-week low, reaching around $71,560 on June 6. However, a correction may be possible based on technical and on-chain factors. The recovery has been driven by increased spot Bitcoin ETF inflows surpassing $1.3 billion over the last two days. Additionally, 100% of Bitcoin’s long-term traders are now in profit, with all remaining holders flipping their unrealized losses into profit.
Long-term holders (LTHs) who have held Bitcoin for more than 155 days mainly purchased during the 2021 bull cycle when it reached its previous all-time high of $69,000. The total volume of LTHs at a loss at the current price is “negligible,” suggesting that as long as the crypto remains above $69,000, all long-term holders will remain in profit. Despite this positive sign, a high number of holders in profit often signals FOMO, which may lead to price corrections as investors book profits.
Bitcoin’s futures open interest has increased by 12% over the last seven days to an all-time high of $37.61 billion on June 6. Some traders believe this rise indicates excessive borrowing, potentially leading to increased price swings. The current strong demand for BTC futures contracts has investors considering the possibility of a pullback similar to the one experienced in March when the price failed to break the $72,000 resistance, resulting in a 22% correction in 25 days.
From a technical standpoint, Bitcoin faces resistance at the $72,000 level, with previous attempts to push the price higher being rejected. Bulls must produce a decisive daily candlestick close above this level to sustain the recovery. Failure to flip $72,000 into support could result in a drop in price, with long position liquidations pulling it towards $68,000. Data shows thick liquidity bids building up above $72,000, highlighting the importance of this resistance area for Bitcoin’s price movement. As always, readers should conduct their own research before making investment decisions.
In conclusion, Bitcoin’s recent price rebound has been driven by increased spot Bitcoin ETF inflows and all long-term holders being in profit. However, the rise in futures open interest and resistance at the $72,000 level indicate the possibility of a correction in the coming days. Traders should be cautious and conduct their own research before making investment decisions to navigate potential price swings and market uncertainty.
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