Bitcoin is currently experiencing significant selling pressure, having retraced from its critical resistance level of $66,000. The cryptocurrency market anticipates a potential further decline below the psychological support at $60,000, possibly reaching down to $56,500 or revisiting lows last seen in May 2024. Despite this bearish outlook, some analysts remain optimistic about the digital asset's long-term prospects.

Normal Market Cycle Correction Post-Halving

In discussions on X, analysts have characterized the ongoing correction as a typical phase within Bitcoin's cyclical market patterns. They suggest that experienced traders should consider accumulating positions during dips, targeting the previous all-time highs achieved in Q1 2024, and anticipating new price territories.

Analyzing the daily chart formation, these analysts argue that Bitcoin's current price behavior mirrors historical trends, especially observed in the weeks following halvings of miner rewards. The most recent halving occurred on April 20, reducing miner rewards from 6.25 BTC to 3.125 BTC, significantly impacting revenue streams for miners.

Bitcoin's Current Market Dynamics

Despite the current correction of around 12% from its peak at $73,800, Bitcoin is following a familiar pattern. Historically, BTC prices have often shown a tendency to rally in the period leading up to halvings, as was observed from October 2023 to March 2024, when prices surged from $25,000 to set new all-time highs. This surge was partly driven by anticipation surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC), which eventually began trading in January 2024.

Entering the "Boring Zone" Amid Whale Activity

Following the post-halving rally, Bitcoin experienced a sharp correction, dropping by 25% to $56,500 in May. This phase typically leads to a period of sideways movement with minimal volatility, aimed at shaking out traders before another potential upward move.

Currently, Bitcoin appears to be in what analysts term the "Boring Zone," characterized by price fluctuations within the $56,500 to $73,800 range. Notably, Ki Young Ju, founder of CryptoQuant, highlighted that whales have been actively selling their BTC holdings over the past two weeks. On-chain data indicates that these long-term holders have offloaded approximately $1.2 billion worth of Bitcoin, likely through brokers, thereby exerting downward pressure on prices. Concurrently, increased outflows from spot Bitcoin ETFs have contributed to slowing down the cryptocurrency's upward momentum.

In summary, while Bitcoin navigates through a phase of heightened selling pressure and market consolidation, analysts and investors alike are closely monitoring its price movements for signals of potential further declines or opportunities for accumulation amid broader market volatility.