Bitcoin Trades in Downtrend Channel as Corrections Lose Steam
Bitcoin (BTC) remains confined within a downward-sloping price channel—a pattern reflecting bearish sentiment—that has persisted since May 22, when BTC hit a high of $112,000. Despite ongoing lower highs and periodic pullbacks, recent price behavior suggests that sellers may be losing their grip.
After peaking in May, Bitcoin declined roughly 10% to settle around the $100,000 mark. The price attempted a rebound to $110,000 on June 10 but quickly faced another 10% drop, briefly falling below $100,000 due to geopolitical tensions between the U.S. and Iran.
More recently, Bitcoin surged to about $109,000 on June 30 before retreating by 3%. However, this latest dip was milder than earlier drops, with BTC bouncing back close to $108,000—hinting at reduced selling pressure.
During this correction, Bitcoin also closed a gap in the CME futures market near $106,000, dipping as low as $105,000. Such gaps arise when Bitcoin’s spot price moves significantly while the Chicago Mercantile Exchange (CME) is closed, leaving “empty” price zones that traders often expect the market to revisit.
According to on-chain analytics from Glassnode, BTC’s recent declines have been relatively moderate. Bitcoin is still trading above its one-month realized price—the average price paid by investors in the last 30 days—suggesting that market confidence remains intact.
Data shows that investors’ average cost basis over the past 24 hours is $105,600, while the one-week average is $106,300. These short-term holders are still in profit, which has helped maintain upward momentum. Nonetheless, persistent profit-taking might prevent Bitcoin from reclaiming its previous highs in the near term.
