Bitcoin Knocks on $70K Level; Bitfinex Hopeful Selling Pressure That Sparked a Correction Is Ending

Bitcoin {{BTC}} briefly rose above $70,000 for the first time in a week on Monday before resuming sideways price action, falling back into a familiar trading range.

The largest cryptocurrency by market cap changed hands around $69,200, up 2% in the last 24 hours, while Ethereum’s ether {{ETH}} was little changed at just under $3,800. The broad market CoinDesk 20 Index is up 1.6% in the past 24 hours.

Bitcoin and the broader crypto market have spent more than two months consolidating since March, when BTC reached a record price of over $73,000.

“This correction phase now appears to be nearing its end,” Bitfinex analysts said in a market update on Monday.

According to the report, selling by long-term holders was the main reason why Bitcoin corrected from all-time highs, but blockchain data shows that these holders began to re-accumulate BTC for the first time since December 2023.

Bitfinex analysts added, based on CryptoQuant data, that the number of new Bitcoin and Ethereum accumulation addresses also increased last month, a sign of an increasing bullish trend despite price stability.

New BTC and ETH accumulation addresses increased last month (Bitfinex via CryptoQuant)

Crypto analysis firm Swissblock stated that the $70,000 and $73,000 levels constitute a significant resistance limiting the price of BTC. “Short-term pullbacks are treated as buying opportunities and the $67,000 level is seen as reliable support,” Swissblock said in a report. said.

Joshua Lim, co-founder of crypto derivatives prime trader Arbelos Markets, told CoinDesk that next week “could be an interesting week to watch” as the release of key inflation data and the Federal Reserve meeting could increase volatility in either direction.

Read more: Bitcoin Hits Low End of Trading Range, But June Data Could Be the Next Catalyst