The price of Bitcoin has been volatile recently, influenced by various economic reports and regulatory updates. After the positive U.S. Consumer Price Index (CPI) report for May, Bitcoin's value initially surged to around $70,000, but began to fall after the Federal Open Market Committee (FOMC) announced that interest rates would remain unchanged. This caused Bitcoin to fall further, falling to around $65,000, and then stabilized between $65,500 and $66,500.
Despite Bitcoin's 5% weekly loss, several key indicators suggest a possible bullish reversal for Bitcoin. Net inflows to exchanges were negative over the past week, suggesting a shift toward self-custody and potentially easing selling pressure. Additionally, the market value to realized value (MVRV) ratio, which is used to assess whether Bitcoin is overvalued or undervalued, has been declining and currently stands at 2.18. This lower ratio could signal a buying opportunity.Currently, several key factors are influencing Bitcoin's market sentiment. Negative exchange net inflows suggest a reduction in short-term selling pressure as more investors move their holdings off exchanges. Additionally, a declining MVRV ratio could indicate that Bitcoin's valuation is approaching more attractive levels, potentially attracting new buyers. Market participants should also keep an eye on macroeconomic indicators and regulatory developments, as these could continue to drive Bitcoin's price dynamics in the short to medium term.
Bitcoin whales continue to accumulate Bitcoin despite the price consolidating around $66,000. The latest data from Santiment shows that the number of wallets holding 10 or more BTC has reached a new high, matching the level seen two years ago.
Analyzing from the daily candle chart of Bitcoin, although it has fallen below the support of $66,000 of the Fibonacci retracement 0.382, it is likely to return to above $66,000 before this candle chart is completed. Of course, if it cannot return to $66,000, it is necessary to consider the support of $60,000.