Bitcoin trades above $9,700 this week, but the path to $10,500 remains unclear. Prices stopped short of $9,900 over the weekend in a sideways move that investors have come to expect. By the second wee
Bitcoin trades above $9,700 this week, but the path to $10,500 remains unclear. Prices stopped short of $9,900 over the weekend in a sideways move that investors have come to expect. By the second week of June, Bitcoin sits just above $9,700 with minimal volatility, giving buyers room to build strength before the European session opens.
On-chain data suggests conditions could turn bullish. Exchange reserves of Bitcoin hit a twelve-month low, with Glassnode reporting that centralized exchanges now hold 2,310,466.600 Bitcoin. The decline signals that holders are moving coins off exchanges, betting on further gains ahead. Fewer coins available for sale reduce selling pressure and open room for sustained upward price movement.
Difficulty dropped 9.3% last week, following a 6% decline after the third halving. Another roughly 7% decline would mark three straight negative adjustments, the third instance of this in Bitcoin's history. In 2011, Bitcoin's difficulty fell eight times in a row. In 2018, three consecutive declines preceded the jump from $3,100 to $14,000.
Miners show signs of stabilizing. Hash rate bounced back from the 50% plunge that followed the halving. Miners also slowed their sales of newly minted Bitcoin last week. A continuation would choke selling pressure further.
Bitcoin needs to clear $10,500 to unlock an upside run. Charting suggests bulls have their sights on $11,900 at the 0.5 Fibonacci level. Bitcoin bounced above this level three times before, only to get slapped back down each time. A fourth attempt could work. Breach $11,900 and the next target stands at $14,000.
Sideways trading persists for now, with the RSI and moving average convergence/divergence indicator both flat. If bulls falter below $10,000, sellers could push toward $9,000. Support emerges at $7,000 if things crack fast.
