Bitcoin Price Stands Firm at $64,807 as Cash-and-Carry Strategy Dominates the Market
Bitcoin has been fluctuating between $56,552 and $73,777 for several weeks, creating a highly volatile trading environment. Traders face the challenge of determining breakout directions within this unpredictable range.
Experts recommend waiting for a clear breakout of resistance levels before making significant trades. As reported by Coin Market Cap News, this situation makes significant trades even more complex.
Impact of Cash-and-Carry Arbitrage
The recent stagnation in Bitcoin’s price is primarily due to the cash-and-carry arbitrage strategy, as highlighted by Glassnode. This trading method involves taking a market-neutral position by buying BTC on the spot market (long) while simultaneously selling the futures contract (short) when it trades at a premium.
According to The Week Onchain Newsletter, this trend is likely to continue. In their Week On Chain report published on June 18, Glassnode analysts noted,
Recent Price Movements and Market Impact
On June 18, Bitcoin hit the lower boundary of its trading range at $64,602. The downtrend of the 20-day EMA at $67,249 and an RSI below 40 indicate bearish dominance. If $64,602 is not maintained, Bitcoin could fall to $60,000. However, a rebound above the 20-day EMA could push it to $70,000.
Despite significant inflows into crypto investment products, Bitcoin’s price remains within a certain range. Glassnode noted that increased cash-and-carry trades – long positions in US spot ETFs and short positions in CME Group futures – mitigate the impact of these inflows.
Moreover, the Bitcoin price fell by 6% last week due to the Federal Reserve’s restrictive stance, shaking investor confidence and leading to $32 million in liquidations in the past 24 hours.
Long-Term Trends and Future Outlook
Bitcoin is now in its fifth epoch following the halving on April 20, which reduced miner rewards from 6.25 BTC to 3.125 BTC, significantly impacting miners’ revenues. Despite a 12% correction from the all-time high of $73,800, analysts remain cautiously optimistic.
As highlighted by CNF, analysts like CrediBULL Crypto point to a possible bottom for Bitcoin around the $64,000 mark. If this level is breached, Bitcoin could fall to critical support levels at $60,000, $52,000, and $46,000. Currently, Bitcoin (BTC) is priced at $64,946.79, reflecting a 0.24% decline in recent days and a 4.87% drop in the past week. See the BTC price chart below for more details.
