The Bitcoin price is currently experiencing a period of consolidation, trading around $64,000. However, analysts predict a potential price correction due to "dumb money" selloffs and upcoming market events. "Dumb money" refers to individual investors who make emotional decisions, often leading to panic selling during market downturns.

According to IntoTheBlock data, a significant number of Bitcoin holders, approximately 5.45 million addresses, have accumulated 3.03 million BTC between $64,300 and $70,800. If the price drops further, these holders may sell to limit their losses, intensifying the downward pressure. Additionally, dormant Bitcoin wallets have been active this week, with a single wallet moving 25,000 BTC in six transactions, adding to market anxiety.

The upcoming week is crucial for the crypto market, with the U.S. GDP growth rate data and PCE inflation data releases coinciding with significant BTC options expiry. This overlap may lead to increased volatility and potential price drops below $60,000. Furthermore, substantial Bitcoin ETF outflows and German government sales have increased market supply, adding to the pressure.

Despite the ongoing selloff, over 87% of Bitcoin holders are still in profit, indicating room for further profit-booking and potential price drops. Analysts predict a continuation of the consolidation phase until the end of summer 2024, with a new bull run potentially beginning in September. However, a reduction in Bitcoin exchange balances and the recent halving event may lead to a supply crunch, supporting the price.

In conclusion, the Bitcoin price faces uncertainty due to potential "dumb money" selloffs and market volatility. While analysts predict a short-term downtrend, the long-term outlook remains positive, with a potential bull run on the horizon. As the market navigates these changes, investors must stay informed and prepared for the potential outcomes.