Bitcoin drops through $58,000 as analysis highlights ongoing BTC seller interest throughout 2024.
Bitcoin dipped more than 2% on July 4 as a key support line saw its first retest since October 2023.
“Spot selling” blamed for latest BTC price rout
Data from TradingView captured new local lows of $57,885 on Bitstamp after the latest daily close.
A lack of sentiment and steady selling from spot markets created unsavory conditions for Bitcoin bulls.
Data from monitoring resource CoinGlass put 24-hour Bitcoin BTC $57,665 long liquidations at nearly $60 million at the time of writing.
Commenting on the latest price action, popular trader Skew noted that BTC/USD had crossed its 200-day moving average (MA) for the first time in 10 months.
“So far since trend rejection & reversal around $63.8K spot selling has been the main driver of this trend,” he explained in part of a post on X.
“So in order for this HTF MA to actually act as a systematic trigger for the market we need to see market demand & reversal signs. Else volatility & momentum pick up to the downside.”
The 200-day MA sat at $58,400 at the time of writing, still marginally below the spot price after a low timeframe bounce.
Zooming out, trading suite DecenTrader eyed a large patch of long liquidations lying in wait closer to $50,000 should the price break down further.
“*If* Bitcoin does breakdown then $51k – $52k remains the area where there is a significant amount of 3x, 5x, and 10x longs liquidity. To the upside, the shorts liquidity is at $76k-78k,” it noted.
A $24 billion sell-off
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, meanwhile saw clear factors influencing recent downside.
Bitcoin, he argued alongside data from onchain analytics firm Glassnode, had been seeing significant sell-side pressure throughout the year. The United States spot Bitcoin exchange-traded funds (ETFs), which launched in January, had been unable to absorb the fallout.
“This is why we haven’t mooned yet. Saylor, Michael Dell, ETFs. It’s all noise,” he told X followers.
“When you look at the data of the 4 most important players in Bitcoin, we have net flows equivalent to $24B being dumped on the market in 2024.”
Edwards stressed that he did not see the ETFs as the “only demand” in the current market.
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