Bitcoin (BTC) surged back to around $67,500 on June 12 following a widespread crypto sell-off that led to significant withdrawals from exchanges.
Traders were not surprised by the downward movement in the price of BTC, as data from Cointelegraph Markets Pro and TradingView indicated that the market was preparing for upcoming macroeconomic events in the United States.
The day before, Bitcoin had dropped to $66,000, resulting in long liquidations totaling over $50 million, according to data from monitoring resource CoinGlass.
These events were in line with a pattern observed before Federal Reserve meetings on interest rates, which coincided with the release of the May Consumer Price Index (CPI).
Many traders recognized the familiar behavior of Bitcoin’s price, especially since it was approaching key resistance levels below its all-time highs.
As one popular trader, Follis, pointed out on social media, Bitcoin had been trading in a range for the past three months, despite calls for a breakout to $100k.
Some analysts warned that if market dynamics did not change, Bitcoin could continue to fall towards $60,000. Currently, there was strong liquidity forming around $65,700, with $67,700 acting as a major resistance level.
Noting the historical patterns in Bitcoin’s price cycles, analyst Rekt Capital suggested that the current market behavior was not unexpected.
In addition to the price action, on-chain data showed a significant increase in withdrawals from exchanges, particularly from Coinbase. The exchange saw a decrease of 14,420 BTC ($972 million) in a 24-hour period, adding to the ongoing trend of decreasing exchange balances.
Overall, exchange balances were at their lowest level in seven years, with Coinbase alone experiencing a drop of over 38,000 BTC in the past month.
On-chain analytics platform Glassnode reported a net transfer volume of 17,967 BTC ($1.21 billion) from exchanges on June 11.
It’s important to note that this article does not provide investment advice. Readers are always encouraged to conduct their own research before making any financial decisions.