Short-term Bitcoin holders move over $1 Billion to exchanges in 3 days

Short-term Bitcoin holders in profit moved over 16,000 BTC, worth over $1 billion, to exchanges in the past three days, according to data from Glassnode. These transfers suggest that the BTC might not all be in the clear yet, as investors’ transfers to exchanges usually signal an intent to sell.

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Last month, the governments of the US and Germany, alongside Bitcoin miners, heavily sold Bitcoin, causing the flagship digital asset’s price to fall 7% to as low as under $60,000. However, current data suggests that the sell-off could worsen because of the high amount of BTC on OTC desks and the defunct Mt. Gox exchange plans to begin distributing around $9 billion worth of BTC to creditors this month.

ETFs might keep Bitcoin price range-bound

With Bitcoin sales now expected to continue into July, analysts at digital assets firm QCP have predicted that the price of Bitcoin could test the lower $50,000 levels in the coming weeks. According to their report, the increased supply could push the flagship asset to a lower price range.

However, the report added Bitcoin remains well-positioned to survive any sell-off and will receive support in the lower $50,000 range. It noted that the interest from traditional finance (TradFi) through ETFs will continue to uphold the price of BTC.

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This aligns with the viewpoint of billionaire entrepreneur Peter Thiel. In an interview with CNBC, Thiel said dramatic Bitcoin value increases might be over with ETFs now available. However, he didn’t rule out price increases but predicted more volatility and less straightforward rallies. He noted:

“I’m not sure it’s going to go up that dramatically from here. We got the ETF edition, and I don’t know who else buys it.”

Still, Thiel, an early Bitcoin investor, admitted that he does not own as much Bitcoin as he would have loved to. Interestingly, his venture capital firm, Founders Fund, was an early investor in Bitcoin, making almost $2 billion in profits from its investment.

Bitcoin might rebound in July 

Meanwhile, not all market analysts think that Bitcoin will continue to decline, as some believe the flagship asset is well-positioned to make a comeback. Blockchain intelligence firm Santiment observed that BTC had been experiencing strong negative sentiments for two months, and traders are becoming extremely impatient. The firm noted that this strong crowd sentiment indicated that the asset could rebound soon.

The firm stated:

“Bitcoin’s mild rebound after the dip the past 2 weeks has been short-lived for now. But note the continued negative sentiment pouring in from the crowd, indicating their patience is wearing thin. This, along with a low RSI of just 36, are strong indications a bounce is close.”

Bitcoin Crowd Sentiment (Source: Santiment)

Similarly, on-chain analyst Ali Martinez suggested that Bitcoin could rise by 6% and reach as high as $66,000. However, for this to occur, the asset must maintain a candlestick close above $62,200. “Bitcoin rebounds when it’s least expected,” he added.

Meanwhile, Bitcoin’s price began the month with a rebound above $63,000, rising by 3% in the past 24 hours, according to CoinMarketCap data.