Bitcoin Knocks on $70K Level; Bitfinex Hopeful Selling Pressure That Sparked a Correction Is Ending

Bitcoin's slump since March was driven by long-term holders selling, but blockchain data shows the trend has stalled and investors are accumulating BTC, Bitfinex said in a report.

AccessTimeIconJun 3, 2024 at 9:26 p.m. UTC

Bitcoin (BTC) briefly topped $70,000 Monday for the first time in a week before retreating to its familiar trading range, continuing its sideways price action.

The largest crypto by market capitalization recently changed hands at around $69,200, up 2% over the past 24 hours, while Ethereum's ether (ETH) was little changed slightly below $3,800. The broad-market CoinDesk 20 Index gained 1.6% over the past 24 hours.

Bitcoin and the broader crypto market have spent more than two months consolidating since March, when BTC hit a record price above $73,000.

"This correction phase now appears to be nearing an end," Bitfinex analysts said in a Monday market update.

According to the report, selling by long-term holders was a key reason for bitcoin's correction from all-time highs, but blockchain data suggests that these holders have started to re-accumulate BTC for the first time since December 2023.

The number of new bitcoin and ether accumulation addresses has also been growing over the past month, a sign of increasing bullish sentiment despite the price stability, Bitfinex analysts added, citing CryptoQuant data.

New BTC and ETH accumulation addresses rising over the past month (Bitfinex via CryptoQuant)
New BTC and ETH accumulation addresses rising over the past month (Bitfinex via CryptoQuant)

Crypto analytics firm Swissblock noted that the $70,000 and $73,000 levels pose significant resistance capping BTC's price. "Short-term pullbacks are being treated as buying opportunities, with the $67,000 level proving to be a reliable support," Swissblock said in a report.

The next week "could be an interesting one to watch" with key inflation data release and Federal Reserve meeting that could fuel volatility in either direction, Joshua Lim, co-founder of crypto derivatives principal trader Arbelos Markets, told CoinDesk.

Edited by Nick Baker.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.