Miner sell-offs and regulatory fears contribute to bearish sentiment, with traders eyeing $65,000 for bullish confirmation.

Bitcoin (BTC) faces potential panic selling if it fails to maintain support above the $60,000 level in the near term, cautions FxPro trader Alex Kuptsikevich. A break above $65,000 is seen as crucial for restoring bullish sentiment among crypto traders.

In Monday's European trading session, BTC briefly surged above $63,000, triggering gains across major and alternative tokens. Notably, Ether (ETH), Solana's SOL, and dogecoin (DOGE) saw a 3% uptick over the past 24 hours, with TON, the token associated with the Tonchain blockchain, leading the rally with a 7% increase.

While the broader cryptocurrency market experienced a 2.24% gain, BTC has largely traded within the $60,000 to $70,000 range since March, with April's highly anticipated halving event resulting in a sell-off amid limited market catalysts. Diminishing inflows from exchange-traded funds (ETFs) have further dampened sentiment in recent weeks.

Kuptsikevich highlights a concerning pattern of lower lows and lower highs in BTC's price action, suggesting investor selling pressure during price rallies. He attributes this pressure to miners offloading assets and apprehensions surrounding potential cryptocurrency regulations.

Should BTC fail to hold above $60,000, Kuptsikevich warns of a potential panic sell-off. Conversely, a bullish scenario would unfold with a break above $65,000, marking a reversal from the early May decline and fixing the price at the 50-day moving average.

Mining difficulty, a metric indicating the computational effort required to validate transactions on a proof-of-work blockchain, has decreased since April's halving. This adjustment can render mining operations less profitable, leading to a decline in miners and contributing to bearish market sentiment.

Additionally, Ryze Labs analysts suggest that short-term bitcoin holders, those holding tokens for less than 155 days, may significantly influence market dynamics in the coming months. Historical data reveals that periods of short-term holder profit often precede market drawdowns, emphasizing the role of institutional demand and macroeconomic conditions in shaping Bitcoin's price trajectory.

While the current cycle may differ due to institutional support and improving macroeconomic fundamentals, analysts caution that a weakening of these factors could prompt a price drawdown reminiscent of past cycles.