The price of Bitcoin has fallen by more than 7.1% in the past day, dropping below $65,000 for the first time since March 24. Historically, the 14th week of the year has been one of the worst weeks for Bitcoin’s price performance, with an average decline of 8.33%, according to Coinglass data. In the past 24 hours, Bitcoin’s price has dropped by over 6%, reaching a low of $64,610. Trading volume for the cryptocurrency has increased by over 75% to $46 billion during the day. An analyst named Rekt Capital believes that Bitcoin’s price momentum will continue to slow down as the Bitcoin halving approaches. They argue that Bitcoin has failed its post-breakout retest and may still recover above the old all-time high of $69,000 before the close of the new weekly candle. To avoid further losses, Bitcoin’s price needs to be sustained above the weekly range low of $65,600.
If Bitcoin’s price were to fall to the $65,000 mark, over $249 million worth of long leveraged positions would be liquidated. The recent correction in Bitcoin’s price has reset several key metrics, including the relative strength index (RSI), which suggests that Bitcoin is no longer overbought. Bitcoin’s price correction can be attributed to newcomers who entered the market in the past two months since the approval of the United States’ spot Bitcoin exchange-traded funds (ETFs). Andrey Stoychev, the head of Prime Brokerage at Nexo, believes that these newcomers are looking to take profits after seeing significant returns within a short period.
Stoychev expects a short-term correction as latecomers enter the market and want to invest in Bitcoin. He points out that historical data shows that Bitcoin bull markets have resulted in significant returns, with three out of the first four cycles surpassing previous highs. Traders should watch the $64,000 mark, as there is a significant amount of Bitcoin futures liquidation leverage at that level. In the past 24 hours alone, over $152.5 million worth of leveraged Bitcoin positions were liquidated, with $109.11 million coming from long positions.
The dormant Bitcoin supply has started to become active again. The supply held by long-term holders has declined by 900,000 BTC since December 2023, with Grayscale accounting for a third of that amount. The short-term holder supply has increased by 1.121 million BTC, absorbing the selling pressure from long-term holders and acquiring an additional 121,000 BTC from the secondary market via exchanges.
Andrey Stoychev’s insights about newcomers entering the market make sense. It’s expected to have a short-term correction as they try to jump in and invest in Bitcoin.
The drop below $65,000 in Bitcoin’s price has definitely caught my attention. Let’s see how the market reacts in the coming days!
The price of Bitcoin is in a freefall. Brace yourselves for more losses, folks.
Just when I thought things couldn’t get worse, Bitcoin’s price takes another nosedive. I’ve had enough!