June bitcoin price close barely breaks 2017 high as Coinbase Premium turns positive

June bitcoin price close barely breaks 2017 high as Coinbase Premium turns positive

The price of bitcoin (BTC) ended the month of June 2022 just below $20,000 after a last-minute rally saw bulls escape 40% monthly losses.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Analyst: Bitcoin Price Could Remain ‘Dull’ for Months

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair rose to what ended up being its monthly close of $19,924 on Bitstamp.

With it, the pair narrowly avoided its first monthly close below an all-time high from a previous halving cycle. On Bitstamp, in November 2017, Bitcoin reached approximately $19,770.

The success was tentative at best for a market that nonetheless sealed its worst monthly loss since September 2011, which was around 37.3%. It was also short-lived as the BTC/USD pair fell as low as $19,000. at the time of writing this article on July 1.

“A cycle bottom is being carved here”, said Philip Swift, creator of the indicator and analyst of the Decentrader trading suite, as part of his Twitter comments after the close.

Bitcoin’s weakness came as US equities posted disappointing results of their own. The second quarter of 2022, commentators noted, was the worst since 1970 for the S&P 500, while the Nasdaq saw its weakest fiscal first half since 1998.

“Adjusted for inflation, the first half of 2022 the S&P 500 is down 25-26%, and the Nasdaq is down 34-35%, and bitcoin is down 64-65%,” reacted Big Short investor Michael J. Burry.

“That was the compression of the multiples. Next is earnings compression. So maybe halfway there.”

Burry had previously forecast that US monetary policy, currently set on raising interest rates to fight inflation, would be forced to change course before the year is out.

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“There are signs of accumulation everywhere: major funds/lenders are going bankrupt, worst quarter ever happened, Nocoiner haters are attacking us, the whole timeline says this time is different,” said William Clementa leading Blockware analyst, to his followers on Twitter.

“If we’re finding an accumulation zone, we’ll probably still see months of boredom and capitulation.”

June bitcoin price close barely breaks 2017 high as Coinbase Premium turns positive
Monthly performance chart of the BTC/USD pair. Source: Coinglass

Coinbase Pro Buyers Step Up, Metric Suggests

Nevertheless, there was new evidence that institutional investors bought BTC at $20,000.

As the CryptoQuant on-chain analytics platform points out, the so-called “Coinbase premium” turned positive again for the first time in two months on June 30.

The Premium is the difference between the price of BTC on the Binance exchange and the institutional division of the US exchange Coinbase, Coinbase Pro.

When it is positive, it means that investors are paying more on Coinbase Pro, which suggests higher demand. The premium stood at 0.217 as of June 30.

June bitcoin price close barely breaks 2017 high as Coinbase Premium turns positive
Coinbase Premium chart against the BTC/USD pair. Source: CryptoQuant

“This rally does not indicate a bull run, but obviously, it tells us that there are institutional buyers in this price range,” commented CryptoQuant CEO Ki Young Ju about the data.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading involves risk, so you should do your own research when making a decision.

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