Bitcoin BTC Price Dips Below 65k Hinting at Potential Capitulation on the Horizon

In the early European session on Tuesday, the total market cap of cryptocurrencies decreased by approximately 3 percent to reach around $2.48 trillion. The altcoin sector suffered the most significant losses as the price of Bitcoin (BTC) briefly fell below $65k, resulting in the liquidation of nearly half a billion dollars from leveraged cryptocurrency trading, mainly affecting long traders.

Concerns about a prolonged bearish trend in the crypto market have prompted more investors to move from altcoins to stablecoins. Consequently, Bitcoin dominance has increased by about 1 percent in the last 24 hours, reaching around 56.18 percent.

Over the past week, spot Bitcoin exchange-traded funds (ETFs) in the United States have experienced significant cash outflows. On Monday, Fidelity’s FBTC and Ark’s ARKB saw total outflows of approximately $92 million and $50 million, respectively.

On the same day, most spot Bitcoin ETFs, led by BlackRock’s IBIT, reported zero net flow. This resulted in total assets under custody in US spot BTC ETFs amounting to around $58 billion, with a total traded volume of approximately $1.2 billion.

The recent cash outflows have been linked to crypto liquidations and prevailing bearish sentiments in the market.

Bitcoin’s price has been range-bound between $61k and $72k over the past four months, currently trading at $65,578 on Tuesday. The price has dipped below the daily 50 Moving Average (MA), with the Relative Strength Index (RSI) approaching oversold levels. If bearish sentiment persists, Bitcoin could find support in the $57k to $60k range, but a rebound to a new all-time high is also possible.

With the approval of spot Ether ETFs in the US, trading is expected to commence next month. Ether’s supply on exchanges is at an all-time low, while there has been a notable increase in new wallet addresses for Ethereum. As Bitcoin dominance declines towards a key resistance level below 60 percent, the anticipated Altseason could be on the horizon.

Tags: Altcoins, Bitcoin, Price Analysis.