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Bitcoin: What is the Reason for the Current Price Drop?

Bitcoin: What is the Reason for the Current Price Drop?

CryptodnesCryptodnes2024/10/10 15:00
By:Cryptodnes

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.

READ MORE:
Here is When We Can Expect Bitcoin ETF Options

In 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

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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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