Bitcoin’s price has fallen by more than 11% in the last week after reaching $64,000 at the beginning of July. According to CoinGecko, the price of Bitcoin fell sharply from a high of $63,652 on July 1 to an intra-day low of $54,434 on July 4.
Also Read: Mt. Gox moves Bitcoin worth $2.7B to a new wallet address
Bitcoin’s price has fallen 23.7% in the last 30 days, while daily trading volume has decreased 34%. However, multiple factors point to a deeper correction, making a rapid rebound from recent losses doubtful in the coming days.
Bitcoin hits new lows since February
The current downward trend in Bitcoin prices is in line with what experts at 10x Research think could be the lowest price goal for BTC. They say that this sharp drop could only be the start and that Bitcoin could go down even more, all the way to $50,000.
Breaking through the psychological level at $60,000 and moving closer to $50,000 is a big change in how the market feels. According to 10x Research, this is because buying flows are drying up while sell flows are accelerating.
Also Read: Why is Bitcoin down today?
Markus Thielen, an analyst at 10x Research, says that the downward trend could have been seen coming. The analysts add, “Bitcoin could shift from its current range trading (60,000-70,000) into a topping formation, potentially leading to a steeper decline. As we’ve observed over the past three months, range trading is a complex phase, often marked by several false breakouts.”
Thielen tweeted the above chart on June 24, predicting Bitcoin’s breakout from its consolidation zone and slide to $50,000, citing the possibility of a double-top pattern.
BTC liquidations double amid market crisis
At the time of writing, BTC is worth $54,378.89, down 1.1% from an hour ago and 7.6% from yesterday. The value of BTC today is 11.8% lower than it was 7 days ago.
The global crypto market cap is $2.09 trillion today, down -8.89% in the last 24 hours and 69.46% from a year ago. BTC currently has a market cap of $1.07 trillion, reflecting a 51.3% market dominance.
Meanwhile, stablecoins’ market cap is $161 billion, accounting for 7.74% of the overall crypto market cap. The rest of the crypto market has tanked amidst the BTC market slump.
According to Coinglass, in the past 24 hours, 234,520 traders have liquidated, totaling $679.37 million. The largest single liquidation order was placed on Binance for Ethereum, valued at $18.48 million.
Crypto liquidations over the past 24 hours include $589.25 million in long bets and $90.22 million in shorts, with long BTC positions making up $226.89 million of the total.
The positive outlook toward crypto has also reached its lowest point since January 2023, with the Crypto Fear & Greed Index scoring 29 out of 100 on July 5, indicating the market is filled with “Fear.”
Traders are worried about potential sell pressure from the $8.5 billion in Bitcoin creditor paybacks owed by the defunct crypto exchange Mt. Gox. On July 5, the exchange transferred 47,229 BTC, worth approximately $2.6 billion, to a new address, marking its first substantial move since May.
Since June 19, the German government has sold 7,583 BTC valued at $419.5 million, adding to the pressure on the Bitcoin price side. The government still has 42,274 BTC, valued at almost $2.3 billion.
Cryptopolitan Reporting by Florence Muchai
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