Bitcoin is trending higher in virtual terms, breaching $63,000 on June 30 before pulling back. Even as momentum builds, the coin’s price action is a source of controversy. Still, some are skeptical, thinking there’s a reason for the possible extremes.
Analyst: Bitcoin Is So Important, Here’s Why
In a post on X, one analyst says the coin may be cooling, extending the 18% decline registered in June. To conclude this, the analyst said that the first test is included in several parameters, including the time, the number of active Bitcoin addresses, and the hash rate.
In this way, the analyst said there is reason to doubt the rise, which calms the spirits of those who hope that the bulls will push. As of writing, Bitcoin is back in a multi-week range with all-time caps and support at $56,800 registered in May.
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From the price action, it’s clear that buyers are in charge, at least from a top-down preview. Despite the lows, especially in May when prices broke $60,000, the bulls have an opportunity to preview the upside.
Notably, prices are within the bullish flag after gains in Q1 2024. However, the failure of consumers to confirm gains in mid-March slowed the rise.
Buyers failed to break $74,000 on the daily chart, and $72,000 is a strong closing line. In the short term, the trend can change if the price jumps significantly above $66,000, preferably after an increase in trading volume.
Germany Sells As BTC Profit Against M1 Money Supply in United States
Another concern fueling the recent abandonment of the German government. On July 1, they transferred 1,500 BTC, worth more than $94 million. Lookonchain data shows that 400 BTC was sent to three exchanges, including Bitstamp.
While it’s not immediately clear if they’re sold, sending them to the exchange means they’re willing to unload–net bearish. An address associated with the German government currently holds more than 44,000 BTC worth more than $2.5 billion in virtual values.
Even amid these concerns, some are bullish on BTC. Citing the relationship between the United States M1 currency and BTC prices, one analyst said the coin is a big gainer.
Looking at the chart, the analyst says that Bitcoin has not reached a new high relative to the US M1 money supply in more than six years.
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However, considering the strong rise in BTC prices since mid-2023, it is highly likely that the bulls will take over, pushing the coin to even higher levels.
Insert image from DALLE, chart from TradingView
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