For the third time this week, Bitcoin (BTC) fell below $64K and killed hopes for a bull run as selling pressure resulted in $100 million BTC being liquidated in an hour.
Bitcoin fell to $62,844 (BTC/USD) early on Tuesday morning after a massive liquidation occurred. Coin holders gave up their positions and sold off their coins as the repeated earlier selloffs from the previous day. The coin recovered slightly to $63,700 at the time of writing, but investors should assume that market sentiment is at a low point.
BTC/USD
The majority of those BTC holders who sold their coins were long-position holders. This indicates that many Bitcoin wallet users have given up on the coin and are no longer waiting for a potential climb back toward $100K or a new record high.
Bitcoin Struggling to Overcome $65K Level
Throughout July, and especially the tail end of the month, the $65K mark has proven to be a stumbling block for Bitcoin. The BTC price took multiple stabs at moving beyond that level, and each time it failed. We expect that this will become a proving ground for the coin over the next week or so. The bar for Bitcoin has now been set low. Investors are no longer looking for a bull trend but rather the ability to hold ground above $65,000.
Bitcoin is in danger of ending the month lower than it started it. The starting point was $58,000, and the current trajectory of the coin is downward, so $58K is not out of the question as an end-of-month level.
The cryptocurrency market is currently bearish, with Bitcoin setting the trend at 2% losses over 24 hours. Other crypto tokens with about the same loss percentage for the day include Ethereum, Dogecoin, and Gram (previously Toncoin), and the market average loss for the day so far is 2%. XRP and Solana both fell 3% as selloffs broke across the entire market, with few leading coins left unscathed.
This kind of wide ranging selloff tends to happen when either the market is peaking and investors want to maximize their profits or when the market is diving and investors want to minimize their losses. It is the latter happening here, and with market sentiment tanking, Bitcoin is in a troublesome spot. It is falling alongside chip stocks and other tech futures which lost between 2% and 4% for the day. We expect that Bitcoin will continue its downward trend even further as the week progresses, but investors buying the dip may save it from bottoming out.
Timothy St. John
Financial Writer – European & US Desks
www.fxleaders.com