Panic selling could push the price of Bitcoin even lower

Bitcoin (BTC) is going through a down period and remains stagnant amid adverse market conditions. Analysts are concerned about less-informed investors prone to emotional reactions, which in turn could fuel the decline through panic selling.

IntoTheBlock data shows that about 5.45 million addresses hold 3.03 million BTC at a price between $64,300 and $70,800, creating a barrier to supply. If the price of Bitcoin falls further, these holders may decide to sell their holdings to limit losses, increasing downward pressure on the price.

Dormant Bitcoin addresses have also seen activity, with one major wallet recently transferring 25,000 BTC, adding to market anxiety.

Additionally, the market faces a critical week due to the expiration of 104,000 BTC options on June 28, 2024. With a put/call ratio of 0.52, it is expected BTC to remain under sales pressure. Furthermore the significant ones Bitcoin ETF outflows and the German government, which move large amounts of BTC on exchanges, increase the market supply.

Despite the selloff, 87% of Bitcoin holders remain in the profit, suggesting the potential for further profit-taking, which could also push prices lower. The analysts predict BTC consolidation until late summer 2024, with a potential bull run starting around September, coinciding with the US election.