Bitcoin, the leading cryptocurrency, experienced a significant drop of over 3% in the past 24 hours, falling to $66,304 after briefly reaching $68,000 on Thursday. This volatility comes amidst the Federal Reserve’s decision to maintain interest rates between 5.25% and 5.50%, overshadowing Bitcoin’s performance in the market.
Earlier in the week, Bitcoin surged close to $72,000 but failed to sustain its momentum, leading to a sharp decline. Despite its peak of $73,798 in March, the cryptocurrency has struggled to reach new highs, largely due to strong inflows into U.S. exchange-traded funds (ETFs).
On June 13, Bitcoin ETFs experienced outflows totaling $226.21 million in a single day. Grayscale Investments’ GBTC saw a $62 million outflow, while Fidelity’s FBTC faced a $106 million outflow, marking its second since inception. In contrast, BlackRock’s Bitcoin ETF recorded an $18 million inflow, standing out from the overall trend of withdrawals. Currently, IBIT manages $17.63 billion in Bitcoin ETF assets.
As of now, Bitcoin is trading at $67,045 with a daily volume of approximately $26.70 billion. The recent flash crash on June 14 pushed Bitcoin below the ascending parallel channel, breaking key support levels. The cryptocurrency is now striving to stay above the 100-day EMA at $67,128. A further drop below this level could lead to more declines, with critical levels at $65,500 and $64,800.
If Bitcoin breaches below $64,500, it could enter a bearish phase, targeting a low of $63,000. A continued drop would push BTC towards the $60,000 demand zone, representing a 15% decrease from its all-time high.
On the other hand, for Bitcoin to recover, bulls need to push the price above the 50-day EMA at $67,800, with key resistance levels at $68,500 and $69,250. Sustaining above these levels could lead to further gains up to $72,500 and potentially a new all-time high between $74,000 and $74,500.