Bitcoin's retail demand has dropped and could be signalling another price surge like we saw in January.
A dormant wallet also recently transferred 8,000 BTC this week, which might indicate selling pressure.
Michaël van de Poppe predicts that Bitcoin might fall to $64,000-$65,000 before a possible rebound.
In sum, the $64,000-$65,000 zone acts as a strong support, with $54,000-$56,000 being the worst-case scenario.
The crypto market has been under some serious duress over the last few weeks, with Bitcoin crashing from all the way over $71,000 to the $67,000 zone.
Naturally, this decline in Bitcoin has dragged the rest of the market down, with most altcoins showing more than a 5% decline on their weekly timeframes.
Will the declines continue?
There’s no surefire way to know. However, we can monitor some interesting developments on Bitcoin, to get a feel for what might be going on underneath it all.
Here are three things to know about Bitcoin for this week.
According to recent data provided by CryptoQuant analyst, Axel Adler, there has been a recent, notable decrease in Bitcoin's retail demand.
The analyst made these speculations public in a 10 June tweet, stating that this crash in the Bitcoin metric has now brought figures to a five-month low.
Interestingly, this trend is similar to something that happened at the start of the year.
In January 2024, the price of Bitcoin rallied by more than 70% to the upside, after a similar crash in retail demand, taking Bitcoin from $40,000 to $70,000.
Adler also highlighted that by “retail investor”, this metric measures Bitcoin transfers of $10,000 or lower.
In essence, this metric has crashed by -17% over the last 30 days, after doing a similar -18% rodeo in January, right around the time of the spot Bitcoin ETF approvals.
Considering the quick reaction of this investor cohort to market changes, and if history is any indication, we might be seeing another Bitcoin price explosion soon.
This week as well, a dormant Bitcoin wallet was observed to have woken up suddenly, after five long years of inactivity.
This whale activity was highlighted by LookOnChain, which stated that this whale promptly woke up this week, transferring a staggering 8,000 BTC, worth around $536.5 million at the time.
Things get bearish from here.
LookOnChain highlights that this transaction happened from a Coinbase cold storage wallet, and into a Binance deposit address. However, there were no preliminary test transactions, indicating that the whale might indeed have moved these funds for selling.
In a recent tweet, Michaël van de Poppe updated his price outlook for Bitcoin, right after it failed to break above the $71,000 resistance level.
According to Van de Poppe’s analysis, Bitcoin’s decline might continue, taking the cryptocurrency further down to between $64,000 and $65,000, where Bitcoin might attempt to stabilize itself and rebound.
Bitcoin’s possible price trajectory
However, there is a catch.
Van de Poppe notes that if Bitcoin fails to hold this support once again, there might be a demand zone between $54,000 and $56,000 where Bitcoin will likely attempt to retake, and where the buyers are more likely to take action.
On the flipside, if we do see this recovery from $64,000 and $65,000, this could open the door for Bitcoin to rally, revisit previous highs and make new ones.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.