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⚡BTC Set for Major Move💰

Croxroad

24 Jun 2024 — 4 min read

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🍩 Bitcoin's Next Breakout

Bitcoin, currently priced at $62,200, is preparing the perfect conditions for a fresh breakout, according to two classic indicators. Popular trader Roman revealed a bullish continuation case for BTC/USD on X (formerly Twitter). Despite disappointing hodlers for much of June, Bitcoin remains a solid bet on higher time frames, where the landscape looks much better. Some argue that BTC price action is consolidating below all-time highs in classic bull market behaviour, which can last for many months. Roman believes that a return to the good times seen earlier this year may be just around the corner.

Roman flagged the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart, foreseeing a squeeze higher as the next logical step for BTC price action. "We are now forming a 3rd bullish divergence between price and RSI while many are capitulating & calling for lower," he wrote on June 21. "Bollinger Bands are also squeezing tighter - creating that volatility to send without returning." An accompanying chart showed RSI making lower lows while the price made higher lows. This, combined with narrowing Bollinger Bands, could produce significant volatility. In a subsequent post, Roman suggested that the target of such an upside move could be well into new all-time high territory. He emphasised the importance of paying attention to the weekly close, indicating that a breakout to $90k+ might be imminent.

Other BTC price predictions face an uphill struggle to come true on time. As Cointelegraph reported, the $80,000 prediction for June has just one week left, and another forecast from May predicted $95,000 in a single blitz breakout. Popular trader Daan Crypto Trades remains optimistic, stating he believes in a breakout towards the upside of the current Bitcoin range. He noted that macroeconomic conditions, such as United States equities hitting record highs and bond yields dropping, are conducive to strong BTC price performance. Historically, this has been a good environment for Bitcoin and crypto to flourish, though it sometimes takes a while for crypto to catch up. When it does, it usually does so in spectacular fashion. At the time of writing, BTC/USD traded around $64,300, according to Cointelegraph Markets Pro and TradingView.

🐋 Bitcoin Drops Below $63K

Bitcoin whales have notably slowed their transaction activity in the past two days, coinciding with a decline in Bitcoin’s price below $63,000. Data from Santiment shows that on June 23, the total number of Bitcoin whale transactions — those $100,000 USD or above — was 9,923 over two days, marking a significant 42% decrease from the 17,091 transactions recorded in the two days prior. This shift in whale behaviour comes as Bitcoin's price fell from $64,685 to $63,422 and continued to decline to $62,531 at the time of publication, according to CoinMarketCap data. Over the past 24 hours, Bitcoin has decreased by 2.92%.

Whale traders betting on Bitcoin’s future price have also adopted a more cautious stance. CryptoQuant CEO Ki Young Ju noted that whale traders on derivatives exchanges are in "risk-off mode," indicating a bearish change in market sentiment. This is reflected by the Interexchange-Flow-Pulse (IFP) turning "red," which tracks Bitcoin movements between spot and derivative exchanges, signalling increased withdrawals from derivatives exchanges. This behaviour underscores a cautious approach among whale traders regarding Bitcoin’s near-term prospects.

Market sentiment, as measured by the Crypto Fear and Greed Index, has dropped to a "Neutral" score of 51, the lowest in 51 days since Bitcoin fell below $60,000. Additionally, spot Bitcoin exchange-traded funds (ETFs) have seen outflows over the past six trading days, with the largest outflow of $226.2 million occurring on June 13. Despite these bearish indicators, some analysts remain optimistic. Glassnode lead analyst James Check highlighted that the Bitcoin Sell-side Risk Ratio has reached levels indicating a potential market movement. He suggested that Bitcoin has exhausted its sell-side pressure and will need to establish a new price range to reignite market dynamics of fear, greed, panic, or euphoria.

⛏️ Bitcoin Mining

Welcome to "What Is Bitcoin Mining?"—a comprehensive series at Croxroad where we delve into the intricate world of Bitcoin mining. In this series, we unravel the fundamental processes behind how transactions are verified and new bitcoins are minted. From the hardware and software used by miners to the cryptographic puzzles they solve, join us as we explore the essential components that drive the backbone of the Bitcoin network. Whether you're new to cryptocurrencies or seeking a deeper understanding of mining operations, this series will guide you through everything you need to know about Bitcoin mining.