Top Reasons Why Bitcoin (BTC) Price is Down Today
Elena R10 Oct 20242 min read
Bitcoin (BTC) is under fire! Prices plummeted by 2.4% in the past 24 hours, trading at around $60.8k during the early European session on Thursday. Even though the Federal Reserve’s meeting minutes hinted at potential rate cuts, Bitcoin’s downward spiral continues.
The Fed noted that unemployment has stayed at manageable levels as inflation has gradually decreased. However, this positive economic signal hasn’t been enough to boost the broader cryptocurrency market, which saw a total market cap drop of 3.2% in the past 24 hours, hovering around $2.22 trillion at the time of this report.
As a result, more than $161 million was liquidated from the crypto-leveraged market, primarily affecting long traders.
Market FUD Pushes Whales Away
On-chain data analysis shows that large Bitcoin holders, often referred to as whales, have been offloading their holdings amid growing fear of further market declines. U.S. spot Bitcoin ETFs recorded a net cash outflow of around $30 million on Wednesday, with BlackRock’s IBIT being the only exception, showing a net cash inflow of about $13.88 million.
Adding to the bearish narrative, over 3.2k BTC were deposited into various crypto exchanges within the past 24 hours, signaling that more significant players may be preparing to sell.
Bitcoin Technical Analysis: Key Levels to Watch
After being rejected at the $65.6k resistance level over the past few weeks, Bitcoin’s price has fallen back into a macro downtrend channel that began in March. According to popular crypto analyst Michaël van de Poppe, Bitcoin is likely to drop below $60k in the near term, with a potential retest of the $57k support level.
If Bitcoin consistently closes below $57k, bearish momentum could intensify, with the next major support target around $52k. Conversely, if Bitcoin manages to break above the $66k resistance level, a new uptrend could form, with a midterm target of approximately $72k.
Bearish or Bullish? The Next Few Days Are Critical
The current market for Bitcoin remains uncertain, with both bearish and bullish possibilities in play. Traders and investors will need to closely monitor price movements and key levels, as any sustained move below $57k could pave the way for further declines, while a break above $66k could signal the start of a new rally.
We’re waiting on the sidelines, just like you, for what happens next. Stay updated right here on Coinpedia.
