Bitcoin Double Top Alert What Could Be the Potential Drop in BTC Price
The current state of the cryptocurrency market is witnessing a significant selloff, led by Bitcoin, which has seen its price drop to $62,000. This downward trend has had a ripple effect on Ethereum and other altcoins, resulting in a total market capitalization decline from $2.35 trillion to $2.26 trillion in the past 24 hours. As a result, investors have suffered losses of approximately $160 billion in just one week.
The shift in investor sentiment from extreme greed to neutrality is evident, with the fear and greed index dropping from 76 to 51. Bitcoin’s price has fallen by more than 3%, reaching a low of $62,258, as selling pressure continues to dominate the market. Traders are closely monitoring the critical support level of $61,000, which was previously seen in April and May. Additionally, market data from Coinglass shows that $170 million in liquidations has taken place today, highlighting the high volatility and risk aversion among traders. The market turmoil was further intensified by a significant order on BitMEX, where a whale sold XBTUSD worth $10 million.
Bitcoin’s downturn has had a domino effect on other cryptocurrencies, with Ethereum experiencing a 4% decline to $3,366 in the past 24 hours. This represents a monthly decrease of more than 10%, indicating a broader weakness in the market. Similarly, major altcoins like Solana, XRP, and Dogecoin have also witnessed losses ranging from 3% to 6%. The sell-off has been particularly pronounced among meme coins and AI-driven cryptocurrencies like dogwifhat (WIF), which saw a significant 14% drop.
Analysts and market data are emphasizing the ongoing uncertainty surrounding key macroeconomic events such as US PCE inflation data and monthly options expiry. 10x Research warns of a potential Bitcoin price drop to $50,000 due to the formation of a double top pattern and continuous outflows from spot Bitcoin ETFs. The research highlights that despite weaker CPI data, a breakout attempt failed three weeks ago in the market. As a result, they have set a stop level at 67,000, but when breached, they adjusted their outlook due to weak money flow. Managing risk is crucial in trading fake breakouts and predicting market tops.
Based on the research report, caution is advised as Ethereum breaches key support levels and Bitcoin enters a downtrend. As Bitcoin approaches potential topping formations within the $60,000-$70,000 range, investors are urged to remain vigilant against further declines, as historically, these have significantly impacted altcoins. Successful trading in the cryptocurrency market requires good risk management, as it moves in parabolic up-cycles.
Looking ahead, the crypto market faces several challenges, including the expiry of 105,000 BTC options contracts worth $6.72 billion on June 28. This event, combined with a put-call ratio of 0.52 and a max pain point at $57,000, suggests that Bitcoin could continue to face selling pressure in the near term.
What are your thoughts on whether it’s a good time to buy or sell? Let us know.
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Price Analysis