Bitcoin surged back to around $67,500 on June 12 following a significant drop in the cryptocurrency market that led to substantial withdrawals from exchanges.
Traders were not taken aback by the volatile behavior of Bitcoin’s price, with data from Cointelegraph Markets Pro and TradingView indicating a stabilization in price action as the market awaited macroeconomic news from the United States.
The previous day had seen Bitcoin plummet to $66,000, triggering a series of long liquidations totaling more than $50 million, according to monitoring resource CoinGlass.
These events were in line with a familiar pattern observed before Federal Reserve meetings on interest rates, coinciding with the release of the Consumer Price Index for May.
Many traders recognized the typical price movements of Bitcoin, especially as the BTC/USD pair lingered near key resistance levels below its all-time highs.
Popular trader Follis noted on X (formerly Twitter), “Same accounts on CT start calling for higher. Saying 100k is programmed. Saying we’re gonna break out and leave the bears behind. When the fact is that $BTC has just been trading in a range for 3 months.”
Some analysts warned of a potential further decline towards $60,000 if market dynamics did not shift.
At the time of writing, CoinGlass data revealed strong support forming around $65,700, with $67,700 acting as a major hurdle for Bitcoin to surpass.
Trader and analyst Rekt Capital emphasized the importance of historical trends in the current Bitcoin price cycle.
Moreover, on-chain data showed a wave of withdrawals from exchanges, particularly from Coinbase, the largest U.S. exchange. The total BTC balance on Coinbase Pro had decreased by 14,420 BTC ($972 million) within 24 hours, adding to a trend of declining exchange balances over the past month.
In the 30 days leading up to June 12, Coinbase saw a decrease of over 38,000 BTC, bringing overall exchange balances to their lowest levels in seven years.
According to Glassnode, the net transfer volume from exchanges on June 11 was recorded at 17,967 BTC ($1.21 billion).
It is important to note that this article does not offer investment advice or recommendations. All investment decisions involve risks, and readers are advised to conduct their own research before making any decisions.