Bitcoin’s price has been moving within a set range, influenced by the cash-and-carry arbitrage technique. Institutional trading activity continues to support this range-bound behavior. Bitcoin has been fluctuating between $56,552 and $73,777 for an extended period, creating a highly volatile trading atmosphere. Traders are faced with the challenge of predicting breakout directions within this unpredictable range.
Experts advise waiting for a clear breach of resistance levels before engaging in significant trades. This situation, as reported in Coin Market Cap news updates, adds a layer of complexity to trading decisions. The impact of the cash-and-carry arbitrage strategy has been a key factor in Bitcoin’s recent price stagnation, as highlighted by Glassnode. This method involves taking a market-neutral position by buying BTC in the spot market (going long) while simultaneously selling its futures contract (going short) when trading at a premium.
The trend of cash-and-carry trading is expected to continue, according to The Week Onchain Newsletter. Glassnode analysts noted in their June 18 report that institutional traders are increasingly engaging in this strategy, reinforcing the expectation of range-bound trading for the foreseeable future. Recent price movements have seen Bitcoin hitting $64,602 on June 18, touching the lower limit of its range. Technical indicators like the 20-day EMA and RSI suggest a bearish trend, with a potential drop to $60,000 if $64,602 fails to hold. However, a bounce above the 20-day EMA could propel Bitcoin to $70,000.
Despite significant inflows into crypto investment products, Bitcoin’s price remains range-bound. Glassnode observed that the increased cash-and-carry trades, involving long positions in U.S. Spot ETFs and shorting futures on the CME Group exchange, have dampened the impact of these inflows. Furthermore, Bitcoin’s price saw a 6% decline in the past week due to the Federal Reserve’s cautious stance, leading to investor uncertainty and $32 million in liquidations over the last 24 hours.
Bitcoin is currently in its fifth epoch following the halving on April 20, resulting in a reduction of miner rewards from 6.25 BTC to 3.125 BTC. This has had a significant impact on miner revenue. Despite a 12% correction from the all-time high of $73,800, analysts remain cautiously positive. Analysts like CrediBULL Crypto point to a potential support level around $64,000 for Bitcoin, with potential drops to critical levels at $60,000, $52,000, and $46,000 if this level is breached. Bitcoin is currently priced at around $64,946.79, reflecting a 0.24% decrease in the past day and a 4.87% decrease in the past week. See the BTC price chart below for more information.