Bitcoin: What is the Reason for the Current Price Drop?
The top cryptocurrency turned bearish midway through the week, despite the Federal Reserve's meeting minutes hinting at a potential rate cut on the horizon.
The Fed emphasized that unemployment remains manageable and inflation is gradually easing.
In the wider crypto market, total market value dropped by 3.2% in the last 24 hours, settling at approximately $2.22 trillion. This decline triggered the liquidation of over $161 million in leveraged positions, with long traders bearing the brunt.
On-chain data reveals that whales are selling off assets, adding to market concerns. U.S. Bitcoin ETFs experienced a net outflow of $30 million on Wednesday, while BlackRock’s IBIT registered an inflow of $13.88 million.
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Here is When We Can Expect Bitcoin ETF OptionsIn the last 24 hours, over 3,200 BTC were moved to exchanges, signaling more potential selling pressure.
After failing to surpass the $65,600 resistance level in recent weeks, Bitcoin has entered a descending parallel channel that began in March. Analyst Michael van de Poppe believes Bitcoin could fall below $60,000 and test support near $57,000.
A consistent close below this level could lead to further declines, with the next key support around $52,000. However, a breakout above $66,000 could signal a new rally, with $72,000 as the next potential target.
#Bitcoin continuing downwards fall, which means that we're likely having lower tests.
I expected it to hold here, but as negative FUD kicks in on corrections, likely we'll see sub $59.5K and reverse from there.
Still slow waters. pic.twitter.com/wiYYHJFCvb
— Michaël van de Poppe (@CryptoMichNL) October 9, 2024
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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