The post Dumb Money May Cause Bitcoin Price Correction, Here’s Why appeared on BitcoinEthereumNews.com.

The Bitcoin (BTC) price is facing significant downward pressure. As of now, BTC trades at around $64,000 remaining stagnant amid the unfavorable market conditions. Whilst, analysts are concerned about dumb money invading the territory and pushing the Bitcoin price lower. Dumb Money Vs BTC According to IntoTheBlock data, about 5.45 million addresses have accumulated 3.03 million BTC between the range of $64,300 and $70,800. Hence, this large concentration of Bitcoin at high prices forms a significant supply barrier. If the Bitcoin price continues to drop, these holders or dumb money traders might sell to limit their losses. This could eventually intensify the downward pressure. Bitcoin Addresses Overview, Source: Ali Martinez | X For context, dumb money refers to the individual or retail investors who act emotionally and are less informed about the market trends. These traders are subject to panic selling during a downturn. Moreover, this selloff trend has already been noted for Bitcoin when the price extended below $67,000. Meanwhile, dormant Bitcoin wallets have been notably active this week. As Bitcoin price dipped below $65,000, an on-chain analyst revealed that a single Bitcoin wallet moved 25,000 BTC in six separate transactions. In addition, this movement added to the market’s anxiety. The Bitcoin Spend Output Age Bands data shows that this wallet’s BTC, aged between 3 to 5 years, could be gearing up for a selloff as market sentiment turns pessimistic. Furthermore, the coming week is critical for the crypto market. Bitcoin and altcoins are under heavy selling pressure. Over the past month, Bitcoin has fallen 10%, while altcoins have dropped by 20-30%. Additionally, 104,000 BTC options, worth $6.72 billion, are set to expire on Friday, June 28, 2024. With a put-call ratio of 0.52 and a max pain point at $57,000, the Bitcoin price is expected to remain under…

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Filed under: News - @ June 24, 2024 3:02 am