The latest weekly close for BTC/USD yielded little change over the past seven days. At just above $26,000, “sideways” is the name of the game for the pair, which weathered a potential volatility storm over the week. A trip to new three-month lows was short-lived, however, and traders are now cautiously waiting for new cues on direction while not defaulting to a bearish view.
Market participants are in “wait and see” mode as the United States holidays mean that traditional markets will only open on June 20, giving at least one day’s grace before any surprises hit.
On-chain analysis offers a clearer vision of support should downside momentum return. Analytics firm Glassnode reveals that recent price action has centered on a key breakeven point for Bitcoin’s more speculative short-term holder (STH) cohort. The aggregate cost basis (CB) for these entities — the price at which they purchased coins within the 155-day window — currently sits at $26,400, roughly matching the 200-week MA.
Among market participants, the focus is on Bitcoin’s correlation to traditional risk assets. Credible Crypto suggested that the recent disparity between BTC and SPX performance may yet resolve in bulls’ favor.
The Grayscale Bitcoin Trust (GBTC) has begun a fresh attempt at narrowing its heavy discount versus the BTC spot price. GBTC has traded at this discount since Bitcoin’s all-time highs in 2021. Last week’s announcement of a Bitcoin spot price exchange-traded fund (ETF) filing by BlackRock appeared to induce a change of mood, and the premium had decreased to -36.6%. Fresh speculation of an ETF offering focuses on asset manager Fidelity Investments.
Crypto market sentiment got spooked last week due to various factors, including U.S. legal action against exchanges and macroeconomic policy changes. A look at the Crypto Fear & Greed Index shows how recent events have left their mark — June 15 saw the lowest score since mid-March. The index measures 47/100 as of June 19.
In summary, Bitcoin markets are holding steady for now, but the focus on macro factors and market sentiment will likely continue as traders and analysts keep a close eye on developments in the coming weeks.
Source: Cointelegraph
