Bitcoin fell more than 2% on July 4 as it retested a key support line for the first time since October 2023.
“Spot Selling” Is Behind the Latest Bitcoin Price Swing
Data from TradingView recorded new local lows of $57,885 after the most recent daily close.
The lack of sentiment and steady selling pressure from spot markets has created unfavorable conditions for Bitcoin investors.
Data from monitoring resources CoinGlass shows Bitcoin Long liquidations in 24 hours at nearly $60 million at the time of writing.
Liquidate BTC | Source: CoinGlass
Commenting on the latest price action, popular trader Skew noted that BTC has crossed above its 200-day moving average (MA) for the first time in 10 months.
“So far, since the trend rejection and reversal around $63,800, spot selling has been the main driver of this trend. So for the higher timeframe MA to actually act as a systematic trigger for the market, we need to see market demand and signs of a reversal. Otherwise, volatility and momentum will turn to the downside,” he said. explain in a post on X.
BTC 1-day price chart and 200 MA | Source: TradingView
The 200-day MA is currently at $58,400 at the time of writing, still slightly below the spot price after the bounce on the lower time frame.
Zoom out chart, DecenTrader trading suite notice to the large amount of Long liquidations waiting near $50,000 if the price drops further.
“If Bitcoin breaks down, $51,000-$52,000 is still an area with significant 3x, 5x and 10x Long liquidity. On the higher levels, there is Short liquidity at $76,000-$78,000.”
Liquidation Map Bitcoin | Source: DecenTrader
D24 billion sell-off dollar
Meanwhile, Charles Edwards – founder of digital asset and quantitative Bitcoin fund Capriole Investments sees clear factors influencing the recent decline.
He argued that Bitcoin saw significant sell-side pressure throughout the year, according to data from onchain analytics firm Glassnode. Bitcoin spot exchange-traded funds (ETFs) launched in the United States in January have failed to absorb the fallout.
“This is why we haven’t had a big rally yet. Saylor, Michael Dell, ETFs. They’re all noise. When you look at the data for the four most important players in Bitcoin, we have a net inflow of $24 billion dumped into the market by 2024,” he said. speak with followers on X.
Net flow Bitcoin since ETF launch | Source: Charles Edwards
Edwards stressed that he doesn’t see ETFs as the “only need” in the current market.
You can see the Bitcoin price here.
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According to Cointelegraph
