Bitcoin (BTC) price did not experience good days in June, and sales were triggered by macroeconomic setbacks. Last week, we saw markets weaken due to BTC sales in Germany. Today, the rapid decline series continued. So, how do QCP Capital analysts evaluate the current situation? What are their predictions for the markets?
QCP Capital Bitcoin Commentary
BTC price was at $61,300 at the time of writing and dropped to $60,567. This caused deeper dips to be tested in altcoins. Altcoins, which have already seen significant capital outflows for a few weeks, fell to oversold levels with today’s decline.
In the assessment published by QCP Capital at the time of writing, the following was stated:
“BTC fell off a cliff and retreated to the 60,500 level after the Mt Gox Trustee announced that distributions would begin at the beginning of July. Despite extending the final payment date multiple times over the years, the Exchange Trustee transferred over 140,000 BTC (worth 9 billion) earlier this year in preparation for repayment.
We see very little activity in the July options market, indicating that the market does not expect significant volatility specific to this event.”
Bitcoin (BTC)
Yesterday, we wrote that miner reserves had fallen to a 10-year low. The news of the return of MTGOX assets accelerated the decline following such large sales. As investors expect a rebound, seeing daily closes at lower levels indicates that weakness in altcoins may continue for a while.
Although the inflation decline on the Fed front has not been very responsive, if the PCE data on Friday comes in at or below expectations, investors might feel somewhat relieved. Another potential development that could increase risk appetite is the SEC approving S-1 Forms for the ETH ETF by the end of the month, paving the way for exchange listing.
BTC has tested the $60,400 region at least 5 times since February 28. The $71,800 level has also been tested 5 times. Although the price fluctuating between these highs and lows has spiked to extreme levels, a real breakout has not been seen. If BTC sees a downward breakout, new spikes between $56,840 and $52,400 could be observed.
