BTC nears 200-week MA, but bottom may require months of consolidation

While Bitcoin's price has dropped near its 200-week moving average, a level historically reached only late in bear markets, a firm bottom will likely be established only after capitulation selling is followed by months of consolidation, according to an analysis. Citing data from Checkonchain, CoinDesk reported that BTC has fallen to a key level watched by long-term holders and that its current valuation is in the bottom 10% of its historical range. This phenomenon was previously seen only during the deepest phases of past bear markets. Checkonchain noted that such indicators typically appear when most price-sensitive sellers have already disposed of their holdings. The firm suggested a bottom would be confirmed after an initial wave of capitulation selling, followed by a multi-month consolidation period that exhausts the remaining holders. Separately, Yves Renno, Head of Trading at Wirex, said that with fading expectations for the passage of the U.S. Clarity Act this year, the market is now focused on the Fed's FOMC meeting on June 16-17. He stated that depending on the tone of remarks from Fed Chairman Kevin Warsh, Bitcoin could either rebound to the $68,000-$72,000 range or fall below $60,000.