Bitcoin’s price has experienced a significant drop of 4.76% in the last 24 hours, leading to concerns in the crypto market. The market’s overall valuation has slid back to $2.13 trillion. Bitcoin itself has plunged to a two-month low of $57.2K, causing a ripple effect among altcoins. Ethereum, the largest altcoin, has fallen to $3.1K.
Interestingly, during this dip, there have been several BTC transfers from notable whales. The German government’s wallet, for instance, has moved approximately 3,000 BTC, equivalent to $173 million, to various wallets and exchanges like Bitstamp, Kraken, and Coinbase.
In addition to the German government, other whales have also been making movements in the past 24 hours. Speculation is now rife about the future direction of the BTC price. At present, Bitcoin is priced at $57,512 with a daily volume of $38.36 billion.
Meanwhile, the spot Bitcoin exchange-traded fund (ETF) market has seen minimal outflows. According to SoSo value, US spot ETFs recorded a total net outflow of $20.45 million on Wednesday.
Data sources reveal that BTC’s futures-to-spot trading volume ratio has dropped by 63%. Commenting on this, Ki Young Ju, CEO of data analytics platform Cryptoquant, emphasized that the Bitcoin market is heavily influenced by futures trading and stated that high spot trading volume is beneficial for the market.
Renowned financial commentator Peter Schiff believes that Bitcoin is currently in a critical support zone. If BTC fails to hold this support, further decline is expected. Over the last month, Bitcoin has struggled to maintain a price above $65k, resulting in a 16.5% decline.
In June, BTC reached a peak of $71K, fueling bullish expectations. However, within days, it dropped to $59K at the end of the month, leaving traders anxious. In the past week, Bitcoin has experienced a 5.96% decline, falling from $63K to $57K, according to CoinMarketCap.
Analyzing the 24-hour price chart, it is evident that the short-term 9-day moving average (9MA) is currently below the 21-day moving average (21MA), indicating a bearish trend. The daily RSI stands at 30.40, signifying that the asset is oversold.
If the bearish sentiment continues, Bitcoin may find its next support level at $56,707. On the other hand, if there is a reversal, the price could potentially rise towards a resistance level of $58,140.
In other news, there are discussions about whether Ethereum’s price will make a bullish comeback following the launch of the spot ETF.