Bitrabo Editorial
Bitcoin (BTC) experienced a 5% drop in price on June 5, 2023, following the SEC’s lawsuit against Binance exchange and CEO Chanpeng Zhao. The crypto industry saw over $313 million in liquidations within 24 hours as the price briefly fell below $25,500 for the first time since March 17, 2023. Despite this, critical Bitcoin metrics remained solid, and on-chain data indicates a bullish outlook for the future.
Long-term Bitcoin Investors are Holding Firm
On-chain data shows that most Bitcoin holders that sold off their coins on June 5 were short-term traders. The Mean Coin Age, which tracks long-term holders’ trading activity, increased marginally during the price retracement, signaling confidence among long-term holders. Currently, 68.15% of the total BTC in circulation is held by long-term investors that have held for more than one year. This suggests that if most of them continue to HODL, the BTC price will likely bounce back above $26,000 in the coming days.
Rising Demand Could Prevent BTC From Dropping Below $25,000
The order books of exchanges suggest that investors are looking to purchase Bitcoin at the $25,000 mark, as aggregate Exchange on-chain Market depth charts reveal. Bitcoin holders have placed orders to purchase 28,000 coins, while sellers have placed only 20,000 up for sale. This supply shortage of 8,000 BTC across exchanges means that the BTC price is likely to rebound once buyers begin to increase their bids to fill their orders quickly. The bullish outlook is further confirmed by Bitcoin’s long-term holder supply shortage and confidence.
BTC Price Prediction: A Rebound Toward $26,500 Could Be Imminent
Considering the bullish activity of whale investors, BTC’s price may rebound above $27,500 in the coming weeks. However, IntoTheBlock’s In/Out of The Money Around Price data suggests that BTC could face its initial major resistance of about $26,900, where 2.12 million investors bought 914,000 BTC at an average price of $26,900. If BTC can manage to scale that resistance zone, it could head towards $29,000 once again. Alternatively, if BTC unexpectedly drops below the critical $25,200 support zone, the bears could invalidate the bullish BTC price recovery. However, the 82,500 investors that purchased 62,000 at an average price of $25,270 will likely prevent the drop. BTC may retrace further towards $23,600 if that support level is breached. It is worth noting that when there is a systemic scare in the crypto markets, strategic investors tend to seek refuge in Layer-1 coins like Bitcoin and ETH. Consequently, as BNB and other altcoins tumble, the demand for BTC will likely increase.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.