Key Points
- Bitcoin plummeted to $65,100, its lowest in four weeks, sparking bearish concerns.
- $214 million in leveraged derivatives were liquidated in 24 hours, totaling $870 million for the week.
- If Bitcoin closes below $65k, it might drop to $61,000, according to market analysts.
- Other top cryptocurrencies fell 15-20% following Bitcoin’s lead.
New Weekly Low for Bitcoin Price
Bitcoin experienced a sharp decline, plunging over 2% in just one hour, dropping from $67,000 to $65,100. This significant 7.5% decrease over the past week has alarmed investors. The market faced a challenging period with nearly $214 million in leveraged derivatives liquidated in the last 24 hours alone, bringing the weekly total to over $870 million. These liquidations, aimed at reducing excessive risk, added further downward pressure on Bitcoin’s price.
Economic data and Federal Reserve projections failed to meet investor expectations for a softer monetary policy, exacerbating the bearish sentiment. Political uncertainty in Europe, particularly a snap election in France, also strengthened the U.S. dollar index (DXY), adding to Bitcoin’s woes. The broader cryptocurrency market followed suit, with top cryptocurrencies like Solana, Avalanche, Cardano, and Near falling between 15-20%.
3 reasons why $65K marks the bottom for #Bitcoin 👇#Bitcoin‘s resilience amid price drops indicates strengthening support at the $65,000 level.#CoinHome $BTChttps://t.co/y9PhDGbWkX
— CoinHome (@CoinHomePro) June 15, 2024
Whale Dumping It’s Bitcoin Holding
Reports indicate significant whale activity, with large Bitcoin holders selling off their assets. One whale transferred 15,975 Bitcoin units on June 14, allegedly moving them in a single transaction to the digital asset exchange Binance. This massive whale dump suggests a bearish sentiment and possibly contributed to the current slump in Bitcoin’s price.
In addition, mining revenue has dropped, especially after April’s Bitcoin halving event. Analysts have noted a substantial increase in mining costs post-halving, further straining Bitcoin’s market dynamics.
What Next For Bitcoin: $61K
Bitcoin is at a crucial juncture after failing to break above $67,500 this week. If it closes below this level, it could trigger a downward spiral towards the 3-month EMA (currently around $64,800). Falling below this could push Bitcoin down to $61,000, the lower limit of its long-term rising channel. This potential drop raises concerns about the future of Bitcoin and whether it can regain its bullish momentum.
Analysts are closely watching the market’s next moves, considering both technical and macroeconomic factors. The interplay between economic data, investor sentiment, and significant market movements will likely determine Bitcoin’s short-term trajectory.
Stay tuned for further updates as we monitor this evolving situation in the cryptocurrency market.
