Bitcoin price took a hit on Wednesday, June 13, dropping as low as $66,865 as the US Federal Reserve decided to keep interest rates at elevated levels, dashing investors’ hopes of an H1 2024 rate cut. Despite this, on-chain data trends reveal how BTC managed to stay above the critical $65,000 support level.
The crypto market experienced a 7% tumble following the US Fed rate pause decision, with Bitcoin bulls struggling to maintain positive momentum amid hawkish shifts in US macroeconomic indices. Despite signs of an imminent economic soft-landing due to slowing CPI inflation, the Fed’s decision to keep interest rates unchanged had a negative impact on risk assets markets, including the cryptocurrency sector.
Bitcoin price rapidly fell to a daily low of $66,896 after the Fed rate decision was announced, marking a 7.22% decline within a 7-day timeframe. However, despite the short-term market sentiment, Bitcoin managed to avoid a reversal below the critical $65,000 psychological support level.
Long-term investors in Bitcoin are showing signs of reluctance to sell, with Santiment’s Age Consumed chart indicating a decline in selling pressure among long-term holders. The recent BTC Age Consumed spike was significantly lower than the previous month’s peak, suggesting that most long-term investors are not engaging in large-scale sell-offs.
Drawing insights from on-chain data analysis, Bitcoin price is expected to consolidate above the $65,000 level despite the current negative market sentiment. IntoTheBlock’s IOMAP data supports this optimistic forecast, with a large cluster of addresses holding BTC at an average price of $65,591. This suggests that holders may make covering purchases if the price approaches the $65,600 level, potentially triggering a rebound.
Overall, without any outlier catalyst, Bitcoin price is likely to consolidate within the $66,000 to $70,000 range as the week progresses. It is important to note that this content is informational and not financial advice, and readers are encouraged to conduct thorough research before making investment decisions.
