Bitcoin surged back to $67,500 on June 12 following a significant drop in the cryptocurrency market that led to substantial withdrawals from exchanges. Traders were not caught off guard by the weak performance of Bitcoin, as data from Cointelegraph Markets Pro and TradingView indicated a stabilization in BTC price as the market prepared for upcoming macroeconomic events in the United States.
The previous day, Bitcoin had tumbled to $66,000, triggering long liquidations totaling over $50 million, according to data from CoinGlass. This pattern of price movement before Federal Reserve meetings on interest rates, coupled with the release of the May Consumer Price Index, was a familiar sight to many traders.
Despite some traders predicting a breakout to $100,000, others warned of a potential drop towards $60,000 if market dynamics did not shift. CoinGlass data showed liquidity forming around $65,700 downwards, with $67,700 acting as a key resistance level.
Popular trader and analyst Rekt Capital drew parallels between the current Bitcoin price cycle and previous ones, emphasizing the importance of historical trends in predicting future movements.
On-chain data revealed a continued trend of exchange withdrawals, with Coinbase experiencing a significant decrease in BTC balance over the past month. The total BTC balance on Coinbase Pro was down by $972 million in the 24 hours leading up to the time of writing, contributing to an overall decline in exchange balances to levels not seen in seven years.
Glassnode reported a net transfer volume of 17,967 BTC ($1.21 billion) from exchanges on June 11. This ongoing trend of withdrawals from exchanges highlighted a shift in investor behavior towards holding onto their Bitcoin assets.
It is important to note that this article does not provide investment advice and readers should conduct their own research before making any financial decisions.