Bitcoin searched for a bottom throughout this week, dropping to $57,737 during trading sessions before recovering to the $61,000 range. The cryptocurrency fell to the $59,000 range on last month 29th and hit $57,737 intraday, marking its lowest level in 21 months. The decline followed Bitcoin's first weekly close below the 200-week moving average since 2022. Investor sentiment partially recovered as expectations grew for Federal Reserve inflation easing, and US spot Bitcoin exchange-traded funds returned to net inflows after 11 trading days of outflows. Market focus centered on whether Bitcoin had confirmed a bottom rather than the magnitude of the rebound, with the Realized Price level of $52,000-$53,000 emerging as the next key support zone representing average investor acquisition costs.
Bitcoin Breaks Below 200-Week Moving Average and Identifies Support Levels
Bitcoin closed last week below the 200-week moving average for the first time since 2022, according to data from global crypto market platform CoinGecko. Following the breach of this long-term trend line, market participants identified the Realized Price range of $52,000-$53,000 as the next critical support level. The Realized Price represents the average acquisition cost across all Bitcoin investors. Market expert forecasts diverged on the timing and depth of potential further declines. Some analysts cited historical cycle patterns suggesting a potential bottom formation around October this year, while others maintained that additional corrections toward the $52,000 Realized Price level remain possible.
Long-Term Holders Return to Net Accumulation Per Glassnode Data
On-chain analysis firm Glassnode reported that long-term investors holding Bitcoin for at least 155 days have returned to net positive positioning. This shift indicates that prolonged net selling flows have begun transitioning to accumulation. However, the current accumulation scale remains limited compared to previous bull markets. In November last year and May this year, long-term holder net accumulation reached approximately 400,000 BTC, while current levels remain at 50,000-100,000 BTC.
CLARITY Act Faces Delays Over Trump Crypto Business Conflict Concerns
The US Digital Asset Market Structure Act, known as the CLARITY Act and considered a key legislative framework for institutional Bitcoin adoption, faces potential processing delays due to conflict-of-interest controversies surrounding President Trump's family crypto business ventures. Democratic Party members have argued that the bill must include ethics-related provisions, citing Trump family crypto operations as an ongoing conflict-of-interest issue. Recent financial disclosures released by the US Office of Government Ethics revealed that President Trump earned over $1.4 billion from crypto business activities last year, intensifying Democratic opposition. Industry observers express concern that delayed bill processing could postpone institutional investor market entry timing.
FAQ
What price level did Bitcoin reach during this week's decline?
Bitcoin dropped to $57,737 during trading sessions this week, marking its lowest level in 21 months, before recovering to the $61,000 range.
What do Glassnode's on-chain data show about long-term Bitcoin holders?
Glassnode reported that investors holding Bitcoin for at least 155 days have returned to net positive positioning, with current accumulation levels at 50,000-100,000 BTC compared to approximately 400,000 BTC during accumulation phases in November last year and May this year.
Why is the CLARITY Act facing potential delays?
The US Digital Asset Market Structure Act faces potential processing delays due to conflict-of-interest controversies surrounding President Trump's family crypto business, with recent US Office of Government Ethics disclosures showing Trump earned over $1.4 billion from crypto business activities last year.
