Bitcoin Price Drops to One-Month Low, Slides Below 50-DMA, Is There More BTC Downside Left?
Bitcoin (BTC), the world’s largest cryptocurrency, continues to face selling pressure, falling another 1% to near $65,000. As of press time, BTC price is trading at $65,685, down 5% on the weekly chart, and its market cap falls below $1.3 trillion. Interestingly, daily trading volume increased by 125% to over $35.7 billion.
Bitcoin Price Drops Below 50-DMA
Bitcoin price has fallen to a one-month low and a key support level of the 50-day moving average indicates a short-term bearish trend in the crypto.
Courtesy: Bloomberg
Bitcoin continues to face selling pressure as the Federal Reserve hints it will keep interest rates higher than expected. Last week, Bitcoin investment products recorded outflows of $620 million, with Bitcoin ETFs bleeding heavily.
Bitcoin ETF outflows seem to continue this week. On Monday, June 17, all nine spot Bitcoin ETFs in the US recorded outflows of $208 million. According to data provided by LookonChain, Fidelity’s FBTC recorded an outflow of over $80 million, while Grayscale’s GBTC recorded an outflow of over $60 million.
More BTC Downside Left?
Popular crypto analyst Rekt Capital shared an interesting view stating that Bitcoin price may not surpass the highs between $60,573-$71,524. Each time BTC price is rejected from the high of this reaccumulation range, diving deeper into the range.
Courtesy: Rekt Capital
To move into the parabolic phase, Bitcoin must surpass the $71,350 high range. However, it seems that BTC price failed to break even the low of $67,183 (image below), suggesting resistance is forming lower and lower.
As a result, sellers put pressure on prices and are willing to sell at lower levels when opportunities arise during rallies. As we can see in the image above, even $67,200 cannot provide critical support. In March, BTC price made a strong recovery from this level, but the quality of the recovery from $67,200 was much weaker.
$67,200 appeared to be a weaker support as Bitcoin price made a weekly close below the blue level. Analysts expect the possibility of BTC price falling to $63,800.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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