Experts are confident in Bitcoin’s ability to defend $60k despite bearish pressure.

Bitcoin continued its decline of more than 6% last week. Later corrections temporarily pushed the property below $60,000.

Although it has rebounded since then, the recovery appears to have stalled around $61,500, leaving investors worried about further losses. This is especially true after the US government transferred 3,940 BTC to Coinbase Prime and accepted the liquidation.

However, QCP Capital believes that bitcoin can defend the $60,000 support.

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Bitcoin's $60K defense

On June 26, the US government transferred 3,940 BTC to Coinbase Prime, Coinbase's institutional trading arm. These marks were originally seized from drug dealer Basmeet Singh, who was convicted earlier this year.

This move has raised concerns that the government may sell off some of its BTC reserves.

According to the latest analysis shared by QCP Capital, Bitcoin is holding well at the $60,000 support level despite heavy bearish pressures. This level can be prevented for two main reasons.

First, a wallet identified as the German government slowed down the flow to the exchange, sending only 250 BTC yesterday. This may signal an end to their current selling regime.

Additionally, Bitcoin ETFs experienced net inflows of $52.4 million over the past two days after seven consecutive days of inflows. Considering these factors, QCP Capital, in its latest analysis, interpreted that the market is ripe for bitcoin stocks.

Such an interpretation may indicate that the property is now being prepared from the ground up.

Bitcoin preparing for a leg up?

CryptoQuant's latest research has also hinted at signs of a local bottom for the underlying asset. The on-chain data platform saw OI drop by $3 billion in the futures market due to long liquidity. Funding for perpetual contracts is close to zero, indicating a balanced market with a “healthy and less optimistic price structure.”

Moreover, BTC's fall below $60,000 this week attracted many buyers. In fact, holders who control 0.1% of the total Bitcoin supply added 7,130 BTC to their holdings in just one day. The newly purchased BTC is around $436 million. Interestingly, this particular stock posted its highest net inflow since late May, which may indicate investors are confident about the price going forward.