Bitcoin Continues to Slide, Prompting Bearish Sentiment
On the morning of July 4, 2024, the price of bitcoin dropped below $57,000, hitting a low of $56,952 at 5:20 a.m. EDT. Speculation is rife regarding the Mt Gox distribution and the German government’s transfer of approximately 3,000 bitcoin to unidentified wallets, including Coinbase, Bitstamp, and Kraken.
Bitcoin’s value has fallen by 4% in the past day and over 6% in the last week. The decline began yesterday at 9:05 p.m. EDT when the price slipped below the $60,000 mark. The community is particularly concerned about the German government’s bitcoin transfers and the expected distribution of coins by Mt Gox this week.
Data from Arkham Intelligence reveals that Mt. Gox wallets have been engaged in dust or test transfers. Although the Mt. Gox Trustee has announced that distribution would commence in July, no specific date has been provided. At the same time, Arkham data indicates that the German government has transferred 3,000 BTC. Federal Reserve officials, including Chair Jerome Powell, have recently stated that the central bank requires more data and time before considering rate cuts.
Low trading volumes and these factors have contributed to the downward trend, pushing BTC below the 200-day moving average. A market update from 10x Research warns that BTC could drop to the $50,000 range. 10x Research has repeatedly cautioned about this bearish trend over the past month, emphasizing the importance of risk management and not being complacent.
10x Research notes that price declines may intensify as support levels are breached and sellers rush to secure liquidity. The researchers state that only ill-informed traders would be willing to buy at this point, and breaking the support could lead to a sharp decline to the low $50,000s. They also point out that many still hold a positive outlook on bitcoin, but a correction to $50,000/$55,000 would have offered better re-entry levels.
The future remains uncertain, but the bearish sentiment has unsettled the crypto community. BTC has dropped 16% this month and is approximately 21% below its all-time high of $73,737 recorded on March 14. With recent transactions and speculative pressure shaking the crypto landscape, the bitcoin market braces itself for potentially steeper declines. At the time of writing, BTC has managed to climb back above the $58,000 range on Thursday morning.
What are your thoughts on bitcoin’s market performance on Thursday? Feel free to share your opinions in the comments section below.
