Bitcoin Price is already in a correction phase, but to regain its price, Bitcoin needs to reverse three major indicators to make a smooth recovery.
Bitcoin dropped its price in recent days and is now trying to regain its price momentum, but according to analysts, it needs to reverse three key elements blocking its way to success.
“Basically, it’s The Boring Zone before The Banana Zone,” Julien Bittel said in the 18 June X post.
A CryptoQuant analyst believes a lasting recovery will depend on improving three “critical” indicators.
Source: CoinMarketCap
CryptoQuant’s IT Tech believes that to make a smooth recovery in Bitcoin‘s price, miners should reduce selling their Bitcoin. The selling kept on increasing when revenue “dropped by 55%.”
After hitting its all-time high of $73,679 in March, miners encountered a major drop in their revenue.
Daily revenue from block rewards and transaction fees reached about $78.89 million on March 11. However, according to Blockchain.com data as of June 12, it has since dropped by roughly 56% to $34.26 million.
The analyst emphasized the need for an increase in stablecoin inflows, noting that the lack of new stablecoin issuances reduces liquidity and impacts price volatility.
According to CryptoQuant data, the amount of stablecoins in crypto exchange reserves has dropped by nearly 10% over the past two months, now totaling $21.96 billion.
The increasing outflow from the spot Bitcoin Exchange Traded Funds, like Fidelity and Grayscale Investments need to slow down as it is creating selling pressure on Bitcoin as analysts predict.
Farside data showed that on June 18 Fidelity Bitcoin Wise Origin Bitcoin Fund encountered a major outflow of $83.1 million, and Grayscale Bitcoin Trust ETF lost $62.3 million as an outflow.
Traders Expect Bitcoin to Breakout Soon
At the time of writing, Bitcoin is trading at a mark of $65,492, 2.41% dawn in the 30-day trading as per CoinMArketCap data. IT Tech believes this is the bottom price of Bitcoin as it is 121% down from its March all-time high.
Altcoin encountered a major price drop in double digits during this market volatility. Famous Altcoins like Solana, Wif, and Dogecoin encountered a drop of 7.53%, 10.23%, and 20.40% respectively.
Bittel noted that Bitcoin’s stagnant price suggests it’s in a “sideways period,” but other traders expect a directional change soon.
“Break this downtrend line and BTC will initiate a price reversal,” Rekt Capital wrote on June 18 after realizing that Bitcoin is suffering from a deep correction throughout June.
