Bitcoin Month-Long Rally Comes To An End: Price Plunges Below $65,000 – What’s Next For BTC?

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As a researcher with a background in finance and experience in following the cryptocurrency market closely, I find the recent downturn in Bitcoin and other major cryptocurrencies concerning. The global economic uncertainty and reduced summer liquidity have contributed to significant selling pressure, causing Bitcoin to drop below $65,000 for the first time since May 16.

The leading digital currency, Bitcoin (BTC), underwent a substantial decrease on Tuesday. This development mirrored the general trend in the cryptocurrency sector. Concerns over the world economy and decreased summer liquidity triggered this decline, causing Bitcoin to dip below the $65,000 threshold for the first time since May 16th.

As an analyst, I’ve observed that Ethereum (ETH) experienced a setback of 4%, with its value settling at $3,400. On the other hand, certain cryptocurrencies like XRP, Solana (SOL), and dogecoin (DOGE) underwent more substantial declines.

Market Uncertainty Persists

Marko Jurina, the CEO of Jumper.Exchange – a decentralized exchange (DEX) – pointed out that in times of economic instability or market volatility, traders frequently opt to sell assets below their usual value to limit losses and vacate riskier holdings until the situation clarifies.

As an analyst, I’ve observed that the present market situation seems to be a result of various interconnected factors. The global economy’s weakening condition, unresolved geopolitical tensions, and reduced trading activity during summer periods are contributing significantly to increased market instability.

For the upcoming several months, the current conditions could continue, possibly resulting in significant upward or downward swings in Bitcoin’s price.

Bitcoin has struggled to break past the $70,000 mark since reaching a peak of $73,700 on March 14. Despite briefly touching this price point in early June, it has failed to maintain its upward trajectory. The digital currency is currently experiencing a 4% decrease for the month and a more significant loss of 9% for the quarter.

Bitcoin Correction Toward $61,000?

Based on the data from CryptoQuant, it appears that traders have been offloading their Bitcoins since late May, when the cryptocurrency reached a price of $70,000. This selling trend has persisted without any notable buying activity to speak of.

Ki Young Ju, the Founder of CryptoQuant, pointed out that Bitcoin’s long-term holder whales sold approximately $1.2 billion worth of crypto over the past two weeks, possibly using broker services. Furthermore, there were net withdrawals to the tune of $460 million from Bitcoin ETFs during this timeframe.

Young Ju argued that if large amounts of sell-side liquidity aren’t bought up through over-the-counter (OTC) trades, brokers might transfer Bitcoins to exchanges instead. This could influence the market.

As a researcher studying the cryptocurrency market, I’d like to share an insight from crypto analyst Ali Martinez. On June 14, he pointed out that for Bitcoin to avoid a potential correction, it was crucial for the price to surpass the $66,250 mark promptly. However, if Bitcoin failed to do so, there was a possibility of a drop down to the $61,100 level.

An analyst named Rekt Capital has noted that Bitcoin is approaching the closure of its first CME price gap, with two open gaps found at $64,000 and $62,500 levels.

As a researcher studying the Bitcoin market, I have observed that bearish sentiment has regained dominance, indicating a difficult path for the cryptocurrency’s price movement. The magnitude of the possible correction and the exact bottom of this ongoing trend reversal remain uncertain.

Bitcoin Month-Long Rally Comes To An End: Price Plunges Below $65,000 – What’s Next For BTC?

At the time of writing, Bitcoin is trading at $64,770. 

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2024-06-19 08:46