Exhausted Sellers Suggest the Start of a Crypto Relief Rally

The cryptocurrency markets might experience a “relief rally” following a tumultuous month of June, as analysts suggest that selling pressure on exchanges has eased. Santiment, a crypto intelligence platform, expressed optimism for July, citing the decline in negative market sentiment and trader losses as indicators that a relief rally may be on the horizon. Bitcoin (BTC) experienced a nearly 7% drop in June, reaching a low of $59,500. This downward trend was mirrored by many other cryptocurrencies, resulting in a $400 billion reduction in the crypto market’s capitalization from its peak of $2.5 trillion in May. Minkyu Woo, an analyst and verified author at CryptoQuant, also shared this positive outlook, noting that sellers seem to have exhausted their selling pressure. Woo observed a decrease in the average size of Tether (USDT) outflows from exchanges since January 2023, suggesting a diminishing large-scale selling pressure. This could potentially be attributed to a more positive investor sentiment following the Bitcoin halving event. However, there are potential headwinds for Bitcoin and the crypto market in July, such as the unlocking of $9 billion worth of BTC held by the long-bankrupt exchange Mt. Gox. This unlock could lead to additional selling pressure as creditors seek to cash out their locked-up crypto assets. Despite these challenges, the possibility of a relief rally remains on the horizon. Currently, BTC is trading around $62,950, representing a 0.4% decrease in the past 24 hours.