As a researcher with a background in cryptocurrencies and financial markets, I believe that the recent price decline of Bitcoin below $60,000 can be attributed to both the CME gap and selling pressure from various sources.
In the past day, Bitcoin‘s price has dipped as low as $58,000. Despite repeated attempts, it couldn’t maintain its position above the significant support level of $60,000. Various market analysts argue that the CME gap might be responsible for this downward trend. However, they also predict a potential rebound for Bitcoin, offering some relief to investors.
The CME Gap Caused Bitcoin To Decline Below $60,000
Expert: In a recent post on X, cryptocurrency analyst Daan Crypto suggested that Bitcoin’s recent price drop was likely to close the price discrepancy, or gap, in the Chicago Mercantile Exchange (CME) futures market around the $60,000 level. Essentially, this means that Bitcoin’s price on the CME had closed at a different rate over the weekend than it was trading at on other exchanges, and Daan believes that the price movement we’ve seen may have been driven by efforts to bring these prices back in line.
When presenting a Bitcoin CME futures chart, crypto analyst Speed Racer pointed out the CME gap as a potential cause for Bitcoin’s recent drop. He explained that market makers were temporarily controlling the BTC market in the short term due to the absence of an explanation for leaving a “$1650 difference between the CME futures prices over the weekend.”
Nino, the crypto expert known as Ninja, interpreted the recent drop in prices as being driven by the CME gap and characterized it as “bullish selling.” He reassured investors that the situation would improve, with a potential market recovery anticipated. However, he acknowledged that the current market instability could induce anxiety among even the most steadfast Bitcoin supporters.
It’s good news that the CME gap incident seems to have been resolved, as Daan Crypto announced. The closing of this gap indicates a potential rebound for Bitcoin from its current price point. Moreover, according to experienced cryptocurrency analyst Michael van de Poppe, we can anticipate an uptick in Bitcoin’s value following the CME gap closure.
Expert’s perspective: Crypto analyst Titan of Crypto expressed a comparable viewpoint, indicating that the CME gap had been closed. He emphasized that there were no longer any obstacles preventing Bitcoin from advancing. Based on the chart he presented, it seemed Bitcoin could potentially reach $72,000 during its next upward trend.
The CME Gap Might Not Be The Only Problem
The selling pressure on Bitcoin is a significant factor contributing to its price drop. According to Farside Investors’ data, there are continuous large-scale withdrawals from Bitcoin Spot ETFs. As a result, the ETF providers are compelled to sell their Bitcoins to meet redemption demands.
An additional factor adding to the selling pressure for Bitcoin is the German government’s continuous sale of its Bitcoins, according to Arkham Intelligence’s data. This pressure is compounded by the impending repayment of approximately $9 billion in crypto to Mt. Gox creditors.
Currently, Bitcoin is priced approximately at $58,600 based on information from CoinMarketCap, representing a decrease of around 3% in the previous 24-hour period.
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2024-07-04 17:11