Bitcoins price has dropped to $64,340 amidst increased market fluctuations and broader economic conditions. This downward movement is a moment for Bitcoin as it faces challenges in maintaining support levels. BTC market capitalization dipped by 3.11% during the rally to $1,268,878,140,393. However, the 24-hour trading volume surged by 7.96% to $34,701,167,470, with investors buying the dip.
Source: CoinMarketCap
Market Reaction to Global Tech Stock Slump
The decline in the cryptocurrency markets is closely linked to a downturn in global technology stocks leading investors to look for secure investment options. Both the S&P 500 and Nasdaq closed at their lowest points in weeks on Wednesday with the S&P 500 seeing a decrease of more than 2%. This spike in volatility, has also impacted the U.S. Dollar, which weakened by 0.7% against the yen, putting pressure on Bitcoin and other digital currencies.
Analysts say that the dip of Bitcoin below $65,000 is more related to seasonal trends and political considerations than to specific events, such as the Mt. Gox sell-off. For example, Timothy Peterson of Cane Island Alternative Advisors, speaking along these lines, wrote that “by tradition, Bitcoin stagnates between July 22 and September 22,” opening the way for potential resumption in “Uptober.”\
#Bitcoin‘s second half performance in even years is lackluster. But in US Presidential election years, the second half performance has been great! pic.twitter.com/ciRQNJlUIO
— Timothy Peterson (@nsquaredvalue) July 25, 2024
Also, market sentiment has been stirred up by the launch of the spot Ether ETFs, and Charles Edwards stated that the timing at which this ETF was launched could have marred the waters at an institutional level.
Mt. Gox Payouts and Market Sentiment
The process of repaying the amount to the creditors of Mt. Gox has also been one of the reasons associated with the negative sentiment. Although it’s claimed that these repayments do not come at the head of the pack, triggering Bitcoin drops, massive flows of BTC are moving to the stock markets, which has formed an uncertain factor.
After the Mt. Gox creditors’ repayment, all global time zones have passed.
Kraken’s spot #Bitcoin trading volumes and exchange flows are normal.
The instant dump you worried about didn’t occur. Any price drop would be likely due to market sentiment, not Mt. Gox selling. https://t.co/BKRCIMALsz pic.twitter.com/iZRejMgj83
— Ki Young Ju (@ki_young_ju) July 24, 2024
According to information from Arkham Intelligence, Mt. Gox transferred to new wallets $2.47 billion worth of BTC for distribution to creditors and fear, uncertainty, and doubt among traders.
Bitcoin’s Price Forecast and Technical Analysis
At the moment, Bitcoin is at a critical level, testing to hold the $65,000 support level. All the technical indicators have indicated that the probability of a bounce increases with the ability to keep this level. The Parabolic SAR indicator remains bullish as long as Bitcoin sustains price levels above $65,000. EMA Wave indicates softening bullish momentum, which may result in consolidation at current levels.
If it manages to hold above $65,000, Bitcoin may well target the next resistance at $70,000. On the contrary, failure to secure this support will likely cause more downside, targeting the crucial level of around $62,600. To new investors’ dismay, the most recent selloff to $64,340 was a 4% retracement over the last 48 hours and further expanded on selling pressure from Mt. Gox payouts, cancelling out bullish momentum following the launch of the Ethereum ETF.
There’s potential for #Bitcoin to rebound as the TD Sequential presents a buy signal on the $BTC hourly chart! pic.twitter.com/2oQqxLE421
— Ali (@ali_charts) July 25, 2024
One of the buying opportunities was noted by crypto analyst Ali_charts on an hourly chart using the TD Sequential indicator. He observed a buy signal in place that should result in a bounce from current levels. This optimism comes against the backdrop of current bearishness.
Market Outlook and Sentiment
The mood overall within the crypto market seems to remain cautiously optimistic in light of the recent decline. The Crypto Fear & Greed Index pegs a score of 68, which shows that the market is still not too bearish. Some on-chain watchers like CoinGlass’ Jelle, for example, are optimistic that Bitcoin might revisit $72,000 if it manages to hold the current support levels.
#Bitcoin has successfully reclaimed the key breakdown area 👀
With local market structure firmly bullish, it looks like the market wants to give $72,000 another test.
According to coinglass, there’s around 7 billion dollars in short liquidations sitting around that area 👀 pic.twitter.com/jMGa0rtyF0
— Jelle (@CryptoJelleNL) July 24, 2024
Meanwhile, there are bearish signals on the horizon. As noted by on-chain analyst Willy Woo, there is an accumulation of the coins moving into spot exchanges. Another capital inflow shift may occur from Bitcoin ETFs to Ether ETFs and affect the price of Bitcoin.
