Bitcoin’s price has dropped below $66,000, driven by a market-wide selloff and significant outflows from U.S.-listed Bitcoin ETFs. Major cryptocurrencies like Dogecoin and Solana have also seen substantial declines, contributing to the bearish sentiment in the market.
Key Takeaways
- Bitcoin’s price fell below $66,000, reversing recent gains.
- Major cryptocurrencies, including Dogecoin and Solana, experienced significant losses.
- U.S.-listed Bitcoin ETFs saw net outflows, impacting bullish sentiment.
- Analysts predict potential further declines if key support levels are breached.
Market Overview
Bitcoin (BTC) and other major cryptocurrencies experienced significant declines during Asian trading hours on Tuesday. The selloff was influenced by ongoing profit-taking and outflows from U.S.-listed Bitcoin ETFs, which negatively impacted bullish sentiment. Bitcoin’s price dropped to nearly $66,500, reversing all its Monday gains, while Ether (ETH) fell to $3,400, reversing all of last week’s gains.
Major Cryptocurrencies Affected
- Dogecoin (DOGE) and Solana (SOL) led the losses, with both tokens dropping as much as 9% in the past 24 hours.
- Ton Network’s TON fell by 5%, while BNB Chain’s BNB outperformed with losses of just 1.5%.
- The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens minus stablecoins, is down 4.2%.
ETF Outflows and Market Sentiment
Bitcoin ETFs recorded net outflows of $145 million, continuing last week’s dismal run. Last week, Bitcoin dipped below the $65,000 mark for the first time in a month as net outflows from ETFs crossed the $500 million mark. The Federal Reserve’s signal of just one interest rate cut in 2024 also contributed to the bearish sentiment.
Analyst Insights
Neil Roarty, an analyst at investment platform Stocklytics, noted that political uncertainty triggered by Emmanuel Macron’s decision to call a snap election in France further strengthened the dollar, putting downward pressure on Bitcoin. Roarty added that it would take considerably lower interest rates and a weaker dollar to push Bitcoin closer to the $70,000 mark.
FxPro senior market analyst Alex Kuptsikevich warned of generally bearish sentiment, noting that favorable Ether ETF developments did little to buoy ETH prices. Kuptsikevich mentioned that increased liquidity on weekdays is likely to favor bears by increasing selling interest.
Technical Analysis
Analyst Josh from Crypto World highlighted that Bitcoin is retesting a critical support area and showing a short-term bullish divergence, suggesting more liquidations might occur soon. He noted that the Bollinger Bands are tightening, indicating a substantial move is likely in the coming weeks, potentially between 20% and 30%.
On the daily chart, Bitcoin is retesting a critical area between $67,000 and $68,000, a zone with major traded volume and resistance. To turn bullish in the short term, Bitcoin must break and stay above $68,000. Failure to do so could result in continued resistance and potential short-term pullbacks.
Future Outlook
If Bitcoin faces rejection from the current resistance, there is important support between $63,000 and $64,000. The volume profile indicator shows a gap in traded volume from $66,000 to $64,000, indicating a quick move between these levels if $66,000 is breached. However, a confirmed breakout above $68,000 is necessary to end the current pullback and resume bullish momentum.
Conclusion
Bitcoin’s recent price drop below $66,000 has triggered a wave of bearish sentiment across the cryptocurrency market. With significant outflows from Bitcoin ETFs and political uncertainties affecting the dollar, the market remains volatile. Analysts suggest that breaking key resistance levels is crucial for Bitcoin to regain its bullish momentum.
Sources
- Dogecoin (DOGE), Solana (SOL) Lead Crypto Majors Plunge as Bitcoin (BTC) Prices Fall Under $66K, CoinDesk.
- Bitcoin price prediction: No confirmation of breakout or bloodbath, price drops below $66k, Coinpedia.
- ‘Buy the dip?’ Bitcoin price drops to new 1-month lows of $64K, Cointelegraph.
- Bitcoin falls below $66k, exchange activity rises, crypto.news.
- Bitcoin Price Slide: Extends Losses Amid Increased Selling Pressure, NewsBTC.
