Bitcoin price experienced a significant drop to $66,865 on Wednesday, June 13, following the US Federal Reserve’s decision to hold off on a rate cut until the first half of 2024. Despite this, on-chain data analysis reveals how Bitcoin managed to maintain its position above the crucial support level of $65,000.
The crypto market witnessed a 7% decline after the US Fed’s announcement, leading to a continued consolidation phase as bullish momentum waned due to shifts in US economic indicators. Despite signs of slowing inflation suggesting a soft economic landing, the Federal Reserve chose to keep interest rates high following the recent FOMC meeting on June 12. This decision had a negative impact on risk assets, including the cryptocurrency market.
Following the Fed’s rate pause, Bitcoin’s price swiftly dropped to $66,896 on June 12, marking a 7.22% decrease within a week. However, despite the bearish sentiment, Bitcoin managed to avoid falling below $65,000, thanks to long-term investors showing reluctance to sell their holdings.
The Age Consumed chart by Santiment indicates a decline in selling pressure among long-term Bitcoin holders, with the recent spike being significantly lower than previous peaks. This suggests that most long-term investors are refraining from large-scale sell-offs, which, combined with increased inflows from Bitcoin ETFs, helped Bitcoin consolidate above $68,000.
Looking ahead, Bitcoin’s price is likely to remain above $65,000 based on on-chain data analysis and the IOMAP data from IntoTheBlock. A cluster of 1 million addresses acquired BTC at an average price of $65,591, indicating strong support at this level. If the price dips close to $65,600, holders are likely to make covering purchases, triggering a rebound. However, a breakout above $69,000 could face resistance from Bitcoin bulls.
In conclusion, barring any unforeseen events, Bitcoin’s price is expected to consolidate between $66,000 and $70,000 in the coming days. It is important for readers to conduct thorough research before making any investment decisions, as the views expressed in this article are the author’s personal opinions and do not reflect the stance of The Crypto Basic.