As a researcher with extensive experience in the cryptocurrency market, I’ve closely monitored Bitcoin’s (BTC) recent price decline and the underlying factors driving it. The current selling pressure has caused BTC to drop below $66,000, marking a significant decrease on both the weekly and daily charts.
I’m an analyst observing the Bitcoin (BTC) market, and I can tell you that the price is currently undergoing selling pressure, resulting in a 1% decline and pushing it closer to the $65,000 mark. At present, Bitcoin is trading at $65,685, which represents a 5% decrease on the weekly chart, causing its market capitalization to dip just below $1.3 trillion. Notably, there has been an impressive surge in daily trading volume, exceeding $35.7 billion, representing a substantial increase of 125%.
Bitcoin Price Drops Under 50-DMA
The cost of a single Bitcoin has dipped down to its lowest point over the past month, while also hitting a significant mark: the 50-day moving average. This trend suggests that Bitcoin is currently experiencing a short-term decline in value within the cryptocurrency market.
Bitcoins are currently experiencing significant selling pressure due to the Federal Reserve’s indication that they will keep interest rates elevated for longer than initially anticipated. Last week, there were substantial outflows totaling $620 million from Bitcoin investment products, with Bitcoin ETFs in particular seeing heavy redemptions.
This week, the Bitcoin ETF drain appears to persist, with all nine US-listed spot Bitcoin ETFs experiencing outflows totaling $208 million on June 17th alone. According to LookonChain’s data, Fidelity’s FBTC recorded over $80 million in outflows and Grayscale’s GBTC saw more than $60 million depart.
Jun 17 Update:
Nine ETFs collectively reduced their holdings of Bitcoin by $3,169,000 (or approximately $-208 million). Among them, Fidelity decreased its Bitcoin possession by $80.34 million (equivalent to 1,224 Bitcoins), leaving it with a current total of 171,529 Bitcoins worth around $11.25 billion. Grayscale, on the other hand, reduced its holding by approximately $61.4 million (or 936 Bitcoins) and now holds a total of 281,212 Bitcoins valued at about $18.45 billion.
— Lookonchain (@lookonchain) June 17, 2024
More BTC Downside Left?
Expert here: Rekt Capital, a well-known cryptocurrency analyst, has provided an intriguing observation. According to him, the Bitcoin price has consistently been rejected whenever it attempts to surpass the peak of $60,573 to $71,524 – a range identified as a re-accumulation zone. Instead of diving deeper into the price range, each time the BTC price encounters resistance at the high of this range.
Bitcoin’s price needs to exceed the prior peak of $71,350 for it to enter the parabolic phase. However, it appears that the BTC price is struggling even to surpass the previous resistance level at $67,183 (as depicted below), indicating that the resistance is gradually increasing.
As a result of this, sellers are weighing down on price and thus willing to sell at the lower levels whenever the chance comes during the rallies. As we can see in the above image, even $67,200 is failing to provide crucial support. Back in March, the BTC price registered a strong rebound from this level, however, the rebound quality from $67,200 was much weaker.
With Bitcoin’s weekly closing price falling below the significant resistance level of $67,200, this level has proven to be less effective in providing support. Analysts now anticipate that the Bitcoin price could decline further, potentially reaching the support level of $63,800.
We’re close..
Like I said last week, everything is noise until we see the Bitcoin price battle at the STHCB.
Now at $63.8k, we’re close to a test.
Will it be support, leading to new ATHs?
Or will price break below, leading to weeks/months of chop?
Let’s watch and see.
— On-Chain College (@OnChainCollege) June 17, 2024
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2024-06-18 12:05