Bitcoin Price Dips to $62K as On-Chain Data Suggests Easing Sell Pressure

The Bitcoin price dropped to around $62,000 on June 20, as geopolitical tensions weighed heavily on sentiment. However, on-chain data revealed a more optimistic picture, with easing sell pressure and reduced leverage.

According to CryptoQuant, exchange netflow flipped back to negative, indicating that coins were leaving exchanges, not entering them. This means the available supply for immediate selling has shrunk.

The funding rate dropped significantly from 0.003985 to 0.000337 in a single day, suggesting long-side crowding had cleared out. Open interest remained below its seven-day high, indicating that leverage had not rebuilt.

While this pattern is encouraging, it's essential to remember that stress markers do not guarantee a reversal. In fact, CryptoQuant's analysis suggests that the bear market may still be ongoing, as the Bitcoin Cycle Momentum indicator has not broken above neutral.