Should We Buy the Bitcoin Pullback at $60K or Wait for $57,000?

Bitcoin has been retreating lower for more than two weeks and now BTC is near $60,000. But we are contemplating whether to buy here or wait for a lower price. The decline has escalated today, so entering the Bitcoin market on the long side right now is like catching a knife through butter, so we are just observing the price action at the moment if it will form a bottom here. If not we will see if the low from early May around $57,000 will hold and maybe go long there. If not, then the $50,000 zone is a great place to look for Bitcoin longs.

The Bitcoin (BTC) price is trading just above $60,000

Bitcoin is currently trading at its lowest level since mid-May, primarily sustained by bids in the $60,500-60,700 range. The situation is highly technical, with the inability to breach the $72,000 mark and the establishment of a recent peak raising concerns among investors. Should Bitcoin fall below the critical support levels of $60,000 and potentially $57,000, it could trigger a bearish pattern that targets a price dip below $50,000.

Bitcoin Chart Daily – We Have the 200 SMA at $57,000 As Well

Mt. Gox, once the leading Bitcoin exchange responsible for processing more than 60% of BTC transactions, gained significant prominence in 2010. However, the exchange faced a catastrophic downfall by the middle of the previous decade, when it admitted to losing hundreds of thousands of Bitcoins due to a combination of hacking incidents and mismanagement. This revelation led to its sudden shutdown and subsequent bankruptcy. After a protracted decade of bankruptcy proceedings, the Rehabilitation Debtor has now announced that repayments to creditors will finally begin, utilizing Bitcoin (BTC) and Bitcoin Cash (BCH).

Scheduled to start on July 2, this development has caused a stir in the cryptocurrency market. Investors are particularly anxious about the potential for increased market volatility as the repayments commence. The anticipation of a large influx of Bitcoin and Bitcoin Cash being distributed has many speculating on how this will impact the already fluctuating market prices. The situation is further compounded by the broader context of the cryptocurrency market, which has been experiencing heightened sensitivity to large transactions and market shifts. The return of these significant amounts of BITCOIN and Bitcoin Cash into circulation is expected to create notable ripples

Bitcoin Miners in Trouble After the BTC Halving Event

Bitcoin miners are grappling with substantial challenges following the BTC halving that took place two months ago. The reduction in block rewards has led to record-low income per terahash (TH/s), causing increased miner bankruptcy. This, in turn, has exerted significant downward pressure on Bitcoin’s price. Recent data shows that miners have sold over $2.46 Billion in Bitcoin have been sold by holders, miners, and ETFs , further impacting the cryptocurrency’s price performance. The continuous selling by miners, combined with technical resistance and the overall market sentiment, suggests a challenging period ahead for Bitcoin’s price stability.

Bitcoin miner Hut 8 (HUT) shares outperformed most of its peers on Monday, driven by a growing trend of AI and (HPC) which stands for high-performance computing firms turning to the bitcoin mining industry for their computing power needs. The Florida-based company attracted significant attention with a substantial $150 million investment from Coatue Management, aimed at building advanced AI infrastructure.

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Skerdian Meta
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Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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