United

Bitcoin

when

Gains

Coin

Bitcoin is trending higher at spot rates, breaching $63,000 on June 30 before recoiling. Even though momentum is building, the action of the coin’s price is a source of debate. Still, some are doubtful, thinking there is reason for a possible overvaluation. 
<h2 id="analyst-bitcoin-is-overvalued-here-s-why">Analyst: Bitcoin Is Overvalued, Here’s Why</h2> 
In a post on X, one analyst <a href="https://x.com/Giovann35084111/status/1807630982910267535" target="_blank" rel="noopener nofollow">argues</a> that the coin may likely cool off, extending the 18% drop registered in June. To conclude this, the analyst said the preview factored in several parameters, including time, the number of active Bitcoin addresses, and <a href="https://www.newsbtc.com/news/bitcoin-network-strengthens-mining-difficulty-hash-rate/" target="_blank" rel="noopener ">hash rate</a>. 
<img loading="lazy" decoding="async" class="size-full wp-image-627214" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527" alt="Bitcoin overvalued | Source: @Giovann35084111 via X" width="1024" height="527" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=2032 2032w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRX-tITbQAA4p0I.png?resize=1024%2C527?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Through this model, the analyst said there was reason to doubt the uptrend, dampening the spirits of optimistic holders expecting bulls to push on. As of writing, Bitcoin is back in the multi-week range with caps at all-time highs and support at $56,800 registered in May. 
From price action, it is clear that buyers are in charge, at least from a top-down preview. Despite the lower lows, especially in May when prices breached $60,000, bulls have a chance from a top-down preview. 
Notably, prices are inside a bull flag after gains in Q1 2024. However, buyers’ failure to confirm gains in mid-March is slowing down the uptrend. 
Buyers have failed to breach $74,000 from the daily chart, and $72,000 is a strong liquidation line. In the short term, the trend could shift if prices break out decisively above $66,000, preferably at the back of rising trading volume. 
<img loading="lazy" decoding="async" src="https://www.tradingview.com/x/qZaUeyhs/" alt="Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1233" height="592"> 
&nbsp; 
&nbsp; 
&nbsp; 
&nbsp; 
<h2 id="germany-selling-as-btc-gains-versus-m1-money-supply-in-the-united-states">Germany Selling As BTC Gains Versus M1 Money Supply In The United States</h2> 
Further fueling concerns is the recent dump by the German government. On July 1, they transferred 1,500 BTC, worth over $94 million. Lookonchain <a href="https://x.com/lookonchain/status/1807698120752627855" rel="nofollow">data</a> shows 400 BTC were sent to three exchanges, including Bitstamp. 
Though it is not immediately clear if they sold, sending them to exchange means they are keen on offloading them–a net bearish. The address associated with the German government currently holds over 44,000 BTC worth more than $2.5 billion at spot rates. 
Even amid these concerns, others are bullish on BTC. Citing the relationship between the United States M1 money supply and BTC prices, one analyst said the coin is priming for major gains. 
<img loading="lazy" decoding="async" class="size-full wp-image-627213" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522" alt="BTC chart versus United States M1 money supply | Source: @CryptoJelleNL via X" width="1024" height="522" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRZBgmOXIAA5Cts.jpg?resize=1024%2C522?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Looking at the chart, the analyst <a href="https://x.com/CryptoJelleNL/status/1807704333053550797" target="_blank" rel="noopener nofollow">argues</a> that Bitcoin has not reached a new all-time high relative to the United States M1 money supply in over six years. 
However, considering the steady surge in BTC prices since mid-2023, it is highly likely that bulls will take over, pushing the coin to fresh all-time highs.

Bitcoin Analyst Says Coin Overvalued: Why Is This BTC Chart Super Bullish?

Table of Contents

NewsBTC

Andre artikler udgivet 1. jul. 2024

PinEye Launches Platform Integrating Gaming and Crypto Rewards

Analysts Predict Imminent Altcoin Surge as Bitcoin Dominance Wanes

Analyst Predicts Ethereum ETF Launch In Early July

GameFi Token Prices Wake Up: BEAM and Immutable (IMX) Pump

Investors Ditch Crypto Oldies Ethereum Classic (ETC) and Bitcoin Cash (BCH) For New Kid On The Bl...

120 Billion Shiba Inu in 24 Hours, Is Ultimate Rebound Here?

Join our free newsletter for daily crypto updates!