Bitcoin
Bitcoin’s month-long bull run comes to an end: Price falls below $65,000
Bitcoin (BTC), the largest cryptocurrency by market capitalization, suffered a significant decline on Tuesday, echoing the broader downtrend in the cryptocurrency market. Fueled by concerns about the global economy and reduced liquidity over the summer, Bitcoin fell below the $65,000 mark for the first time since May 16.
Notably, Ethereum (ETH) also faced a 4% loss, trading at $3,400, while other cryptocurrencies such as XRP, Solana (SOL), and dogecoin (DOGE) suffered even bigger drops.
Market uncertainty persists
Marko Jurina, CEO of Jumper.Exchange, a decentralized exchange (DEX), highlighted that during economic and market uncertainty, traders often sell at a discount to minimize losses or exit riskier positions until the situation becomes clearer.
Jurina explained that the current scenario appears to be a combination of these factors, as the global weakening Economic conditionsUnresolved geopolitical issues and lower market activity during the summer months contribute to greater market volatility.
These conditions will persist over the next few months, potentially leading to parabolic moves in either direction for the price of Bitcoin.
Bitcoin has struggled with the $70,000 cap since its all-time high of $73,700 on March 14. Although it briefly tested this level in early June, it has since failed to recover its level. bullish momentum. The cryptocurrency is currently down 4% for the month and 9% for the quarter.
Bitcoin correction towards $61,000?
On-chain data from CryptoQuant suggests that traders have reduced their holdings since late May when Bitcoin reached the $70,000 level. This selling trend continues without significant buying activity.
Ki Young Ju, founder of CryptoQuant, highlighted that long-term Bitcoin holding whales have sold $1.2 billion in the last two weeks, likely through brokers. Additionally, there were negative net flows into ETFs, with outflows of $460 million during the same period.
Young Ju argued that if this substantial sell-side liquidity is not purchased over-the-counter (OTC), brokers can deposit Bitcoin in exchangespotentially impacting the market.
On June 14, crypto analyst Ali Martinez emphasized that Bitcoin needed to surpass the $66,250 level quickly to avoid a possible correction to $61,100. As the cryptocurrency struggles to regain bullish momentum, Martinez suggested on a possible drop to $61,000.
Another analyst, Rekt Capital, pointed that Bitcoin is getting closer to filling its first gap on the Chicago Mercantile Exchange (CME), with gaps at $64,000 and $62,500.
Overall, the prevailing evidence suggests that bearish sentiment has once again taken control over the future trajectory of Bitcoin’s price, signaling a challenging path ahead for the market’s leading cryptocurrency. The extent of the potential pullback and the end point of this ongoing downward trend have not yet been determined.
At the time of writing, Bitcoin is trading at $64,770.
Featured image of DALL-E, chart from TradingView.com