On Monday, the price of Bitcoin sharply dropped further, continuing a significant decline observed over the past week. As the largest crypto, BTC achieved a new all-time high of $73,750 on March 14, 2024, but has since been undergoing corrections.
Bitcoin’s price dropped by 1.6% intraday and almost 8% over the past week to reach $61,087 on June 24. Its market capitalization also fell to $1.26 trillion, marking a 7% decline from its peak.
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Other major cryptocurrencies followed a similar trend: Ethereum (4.04%), XRP (2.97%), Dogecoin (XRP (2.97%)), Avalanche (5.19%), Tron (1.12%), Cardano (3.68%), Solana (7.28%), BNB (3.79%), Toncoin (4.89%), and Polygon (4.41%).
Bitcoin performance in June 2024
Bitcoin’s trend in June 2024 has been marked by a decline, influenced by concerns among investors about the S&P 500 potentially reaching its peak. This coincided with a surge in the dollar, exerting pressure on assets such as cryptocurrencies. The recent all-time high of 5,368 points for the S&P 500 futures further intensified these market dynamics.
Since reaching its peak of $73,750, Bitcoin has experienced a decline of approximately 19.59%, dipping below $60,000 earlier this month. Regulatory scrutiny remains a focal point in the market, particularly with the SEC’s heightened enforcement actions against major crypto entities like Consensys.
Concurrently, enthusiasm for Spot Bitcoin ETFs is waning. Blackrock ETF, for instance, saw its first outflows since its January inception, with approximately $36.9 million exiting the fund. This underscores that even institutional investors are susceptible to market sentiment and uncertainties (Fear, Uncertainty, Doubt, or FUD).
Technical analysis and predictions
The BTC/USD pair is approaching the lower trendline, coinciding with the psychological support level of $60,000. Notably, the $60,000 target aligns closely with Bitcoin’s 200-day exponential moving average (200-day EMA) at around $58,000, enhancing the probability of Bitcoin entering the $58,000-60,000 range by July.
Rajagopal Menon, Vice President of WazirX, a major crypto exchange in India, notes that:
Economic indicators present a mixed bag: the FOMC’s recent stance suggests a cautious approach toward rate hikes, with persistently high inflation adding a layer of uncertainty. Additionally, markets are on the edge concerning Japan’s economic situation, adding to the uncertainty.
However, Bitcoin’s resilience during these times is notable. Technical analysis indicates that Bitcoin is priming for a significant upward move, finding strong support at crucial levels and showing patterns on the RSI that historically precede major rallies.
Rajagopal Menon
Furthermore, he claims that analysts are unified in their belief that the present market conditions might be the beginning of a significant bull run, sending Bitcoin back to prior all-time highs.
Bitcoin retail investors’ demand rises as price plummets
BTC retail investors’ demand surges as the price falls. According to macro analyst Axel Adler, as the price of BTC continues to decline, interest in buying from accounts with up to $10,000 increases. The analyst says this indicator has been surging during the last few weeks and has already added 7%, which can be treated as a positive signal.
Overall, while Adler emphasizes that retail interest is too low to predict a recovery, retail interest should be interpreted positively. According to his chart created from CryptoQuant data, the dynamics of retail account interest may be connected with the possibility of price movements.
The analyst also pointed out that the rally for the leading crypto will return as crypto whales are keen on reinvesting their gains.
Cryptopolitan Reporting by Florence Muchai
