Bitcoin (BTC), by far the most valuable cryptocurrency in terms of market cap, suffered a major decline on Tuesday. broader downtrend In the cryptocurrency market. Bitcoin fell below $65,000 for the first since May 16 due to concerns about the world economy and reduced liquidity during the summer.
Ethereum (ETH) suffered a 4% drop, with a trading price of $3,400. However, other cryptocurrencies like XRP and Solana (SOL) as well as dogecoin have seen even larger drops.
The Market is Uncertain
Marko Jurina CEO of Jumper.Exchange a DEX, highlighted It is common for traders to sell their riskier or more volatile positions at a discounted price during times of economic or market uncertainty in order to reduce losses and exit the position.
Related Reading
Jurina explained the current situation as a combination. She cited weakening of global economic conditions. unresolved issues geopolitical and thinned market activity in the summer months all contribute to heightened volatility.
This condition will continue for a long time next Bitcoin’s price could experience a parabolic movement in either direction within the next few months.
Bitcoin is struggling to break the $70,000 barrier since it reached its highest level of $73,700 in March. It briefly reached this level at the beginning of June but has not been able to recover its previous levels. bullish momentum. The crypto currency is down by 4% this month, and 9% in the last quarter.
Bitcoin Correction Toward $61,000?
CryptoQuant data on the chain indicates that traders have reduced their Bitcoin holdings from late May, when Bitcoin reached $70,000. This trend of selling without any significant purchases continues.
Ki Young Ju was the creator of CryptoQuant. highlighted Bitcoin whales, long-term holders of the cryptocurrency who have held it for a very long time, sold $1.2 Billion in just two weeks. This was likely done through brokers. ETFs also saw a negative net flow, as $460 million was withdrawn during this time period.
Young Ju argued that brokers could deposit Bitcoins to the exchange if they did not purchase this sell-side liquidty over-the counter (OTC). exchangesThe market could be affected by the.
Crypto analyst Ali Martinez stated on June 14 that Bitcoin must break through the $66,250 mark quickly in order to avoid a possible correction down to $61,100. Martinez says that the crypto struggles to recover its bullish momentum. hinted At a potential drop of $61,000.
Rekt capital is another analyst. pointed out Bitcoin’s first Chicago Mercantile Exchange gap is about to be filled, and the gaps are $64,000 and 62,500.
Related Reading
Overall, it appears that the dominant evidence shows that the current bearish sentiment is once again controlling the trajectory of Bitcoin’s future price. This signals a difficult road for the top cryptocurrency on the market. It is still unclear what the extent of the retracement will be and where the downward trend of Bitcoin’s price will bottom out.
Bitcoin was trading for $64,770 at the time this article was written.
Chart from TradingView.com, image from DALLE
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com