Bitcoin Stops at $66,000: Is the Bull Market Over or Will Altcoins Like Ethereum Set a New Record?

• Bitcoin has remained stuck around $66,000 for the past five days, with data showing investors are nervous, even as BTC investment products lose more than $600 million in outflows.
• Analysts say BTC could retest $60,000 and a breach would lead to a drop to $48,000, but a resumption of altcoin momentum could save the top cryptocurrency.

Since crossing $70,000 ten days ago, Bitcoin has lost its momentum and has been stuck at around $66,000 for the past week. Analysts fear the leading cryptocurrency could retest its support at around $60,000, with market data revealing investors are nervous and considering taking profits for fear it could fall further.

As of this writing, BTC is trading at $65,700, down 1.45% over the past day, setting an intraday high of $66,852. Trading volume rebounded after the weekend’s slump, rising 58% to $20.1 billion.

Since dropping below $67,000 on Wednesday, the leading cryptocurrency has been unable to gather momentum to break above this resistance. It fell to $65,100 over the weekend, the lowest price since early May.

As happens whenever Bitcoin drops, mentions of “selling” and “profit taking” have increased over the past week, Santiment data shows. However, the market intelligence platform states: “…a temporary rebound and buying opportunity may form if we see continued FUD and panic from small traders.”

Julio Moreno, head of research at on-chain analytics provider Crypto Quant, explains further revealed that BTC is hovering around a critical level: the price realized by traders. This level, illustrated by the pink line in the chart below, traditionally serves as support for the cryptocurrency (marked by green circles). If the coin drops below this level, it usually drops 8-12%, and in this case, it would push BTC to $60,000, the analyst says.

Further increasing pressure on Bitcoin is exit age ranges, says Crypto Quant. This metric evaluates the length of time spent BTC was held by the sender. Over the past week, 40% of BTC sent were held between three and six months, while 20% were held between six and 12 months.

“These sent $BTC will create selling pressure,” Crypto Quant He says.

These factors are exacerbated by the capital flight from the Bitcoin space that occurred last week. Second According to data from CoinShares, institutional investments fell by $621 million last week, the largest weekly outflow since March. GBTC, the Grayscale Bitcoin Spot ETF, lost a staggering $273 million last week. Ark and Fidelity lost about $150 million each. While most altcoin funds saw net inflows, major Bitcoin funds lost more than could be offset.

Despite the bearish week, some analysts dismissed it as normal market turbulence. One, known as Jelle to his 87,000X followers, he wrote:

Sideways price action is not, in general, a bad thing. Lack of patience is. I’m pretty sure everything will work out, just like all the other times.

He believes this is just like any other consolidation phase, which historically sets Bitcoin up for huge gains.

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