Bitcoin (BTC) Price Bottoming But \'Chopsolidation\' Trend to Continue, Analysts Predict

The market is confirming the flashing warning signs of a fall in Bitcoin (BTC) price predicted by James Check, former lead analyst for blockchain

Former lead analyst for blockchain analytics firm Glassnode, James Check, is preparing for lower prices in anticipation of a bear market. Several indicators are pointing towards this possibility, including a net-long bias among traders and unrealized losses among short-term holders.

However, Check's analysis does not aim to predict precise prices, but rather identify general market trends. Some traders believe that the market is in a “chopsolidation” phase, with prices moving sideways within a narrow range. Prominent crypto trader Scott Melker has observed that Bitcoin is bottoming, indicating a technical analysis that shows Bitcoin bottoming, although he called it a process.

According to Melker, Bitcoin is nearing a crucial technical signal, with prices hovering just above a key support level. Melker is "just looking for an entry point" into a BTC position.

While technical analysis can be useful in predicting trends, some, like Taras Kulyk, CEO of Bitcoin mining firm SunnySideDigital, believe that most traders are attempting to generate negative sentiment in order to obtain a better entry point for a BTC position.

Kulyk feels that the ongoing institutional interest in the ETF space should be a more appropriate focus for investors. However, numbers coming out of the Bitcoin ETF space seem to align more with Check and Melker's analyses than Kulyk's bullishness.

Despite the sell-off, inflows have been largely underwhelming, especially considering the massive sell-off in the spot market. Discounting a few days of彙款 in the earlier part of June, recent weeks have seen outflows amid the sell-off, indicating that the market is largely still undecided on a direction.

According to Melker, the market might be in the “mid-summer doldrums,” although James Butterfill of CoinShares has previously stated that the data does not support the concept of summer doldrums.

There is a washout underway, but Check is still optimistic about the possibility of a bear market, which other analysts have also suggested. However, what gives him “a bit of confidence” is that the amount of Bitcoin at an unrealized Profit/Loss is not yet at mid-2021 levels, which is when the protracted downturn that ultimately saw BTC trading for $16,000 began.

He is patiently waiting for potential further downside, especially to wash out the people who think $73,000 is the cycle top. “That's what we're looking for, ultimately, to see coins distribute down to a lower cost basis,” he said.

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