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Tue, Jul 7, 2020 11:00 AM

Bitcoin June Roller Coaster: Why BTC Price Began To Jump

Bitcoin june

At the end of June, Bitcoin showed a noticeable drop and a certain rebound. What happened and what to expect, we will investigate in this review.

Bitcoin graph with datesBitcoin graph

Why did the Bitcoin price fall and rise at the end of June

Bitcoin moth chart

Over the past month, Bitcoin has shown two price peaks. The first was on June 11 ($9,938.75), and the second on June 23 ($9,691.90). But after that, the price fell abruptly, reaching its minimum value in the last 30 days $8,946.81 (June 27) (data from blockchain.com). At the same time, on a number of crypto exchanges, the minimum price even reached $8,840.

In the recent review by NewsBTC, this situation is called compensation for its bull run. From March 13 to the present, this cryptocurrency has grown 1.5 times. As an explanation for such wobble, There is an opinion that Bitcoin was correlated with the U.S. stock market, which was negatively influenced by four factors: BLM protests, rising unemployment, slower USD emission and the second wave of coronavirus. This close connection with stock factors is confirmed by Mati Greenspan (Quantum Economics). If you look at the numbers you can see that the S&P 500 and the Dow Jones lost 2.59% and 2.72%.

In addition to the decline in stock indices, buyers' activity was also influenced by the sale of Bitcoins by miners, the prolonged period of low volatility (see below), and repeated unsuccessful attempts to overcome the level of $10,000.

After that, BTC tried to recover, but it didn't work out very well. To a certain extent, the partial recovery of the BTC price was influenced by the June 27 news that the Zimbabwean government, due to the collapse of the national currency, stopped trading on the local stock exchange and froze the operation of all mobile payment systems. This has led to a significant increase in the BTC price on local platforms.

Is it a bull or a bear market now: expert opinions and forecasts

Analyst Cole Garner predicted fast mass sales and drop in prices soon. He was supported by analyst Ki Young Ju, who supposed a small bear trend in mid-July.

It is important not to consider the correction of market conditions due to the short-term trend as a bear market. Such corrections are an excellent chance for traders to find entry points to the market. Therefore, it is not a surprising opinion that, for many signs, the bull trend is now in the BTC market. Moreover, on June 27, the hypothesis appeared that whales were preparing to enter the market. The crypto trader Jonny Moe hinted at this with a screenshot of the order book.

Screenshot of the order book

As you can see, there is an impressive pool of orders for the purchase of Bitcoin in the range of $8,600 $8,800.

The second bright signal: Grayscale (N.Y.) added 19,879 BTC to their Investment Trust at the end of June.

Greyscale added bitcoin

Cole Garner commented on Twitter June 24 that he was "massively bullish on Bitcoin". Nevertheless, he clearly outlined his forecast for the Bitcoin rate in the near future. He expects a significant drop in prices. In the same message, he called for attention to a significant increase in the transfer of mined Bitcoins to exchanges.

A lot of work has been done by the experts of the analytical service Phi Deltalytics. They reviewed Bitcoin On-Chain Data and published research results on TradingView. In their June 29 study, they looked at how Bear Trend turned into the confident Bull Trend in December 2019.

Bitcoin On-Chain Data

On July 3, they posted an updated study, taking into account the movements of the course of the past week. The authors conclude that the last week fluctuations make the bull trend weaker in the short term. They note in the near future BTC will not be able to break through the resistance point of $10,000.

Updated study

In addition, Glassnode notes that the total balance of Bitcoins on Exchanges at the end of June reached a minimum of the last 13 months. Moreover, even a partial price recovery did not affect the outflow. In general, according to the statistics, CoinGape concludes that a bull run is quite likely.

Coingape statistics

So what about Bitcoin volatility

Despite the ups and downs described last week, experts are slightly concerned about the low volatility of BTC. This is noted by both Blockroots Co-Founder Josh Rager and an XC analyst on his Twitter.

It is believed that after such protracted periods of low activity, explosive price movements may start.

Disclaimer

This review is purely informational and does not call for any action with cryptocurrencies.

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