July 24, 2024
Bitcoin Price Drops to $60,939 as Sentiment Hits Six-Week Lows
Bitcoin price today

Bitcoin Price Drops to $60,939 as Sentiment Hits Six-Week Lows

Monday, June 24, 2024: Bitcoin Price Today is $60,939. It is heading for a significant range-low retest as Bitcoin price action nears $60,000. This decline has led Bitcoin to challenge core resistance levels, a crucial test for bulls with the monthly close approaching.

BTC/USD 1-day chart. Source: TradingView

BTC has fallen below multiple moving averages, plunging short-term holders into the red. This decrease has caused a temporary setback in demand, particularly among whales, as Bitcoin price reaches its lowest in over a month. Factors contributing to this volatility include the upcoming U.S. unemployment data release on June 28 and the revised second-quarter GDP figures, followed by the Fed’s preferred inflation gauge the next day.

Total altcoin market cap 1-day chart. Source: TradingView

BTC Faces Challenges Amid Key Economic Data

Bitcoin has seen a 7% decline in June, with BTC/USD dropping to $62,128 on Bitstamp, its lowest level since May 15. As the weekly and quarterly close approaches, traders are concerned about BTC’s performance. Crypto Ed, a popular trader, noted, “BTC looks weaker than I expected and should see some more downside.” Another trader, Daan Crypto Trades, highlighted the importance of the current level within Bitcoin’s multimonth trading range, stating, “Arrived at the golden pocket Fibonacci retracement level. If there’s bulls left that want to make this into a higher low then this is the spot.”

“A bounce should lead to a mid range retest, where failing to do so likely results in a range low retest.”

BTC/USDT perp chart. Source: Daan Crypto Trades

Data from CoinGlass shows BTC/USD cutting through bid support above $62,000, with around $48 million of BTC longs liquidated in the past 24 hours. This week’s macroeconomic data, including U.S. jobless claims, revised Q2 GDP, and the May PCE index, are crucial as they impact crypto markets significantly. The Kobeissi Letter summarized, “Tons of important data to wrap up Q2 2024 this week,” with PCE expected to influence market fears of stagflation.

“I expect a lower than expected read which should turn #BTC #Crypto #Altcoins and other risk assets higher imo.”

Whales and Market Sentiment Under Scrutiny

Despite U.S. stocks like the S&P 500 reaching new highs, Bitcoin’s weakness persists, highlighting an inverse correlation that surprises many. “Short interest on the S&P 500 and Nasdaq 100 ETFs is at a six-year low,” Kobeissi noted.

“Since 2023, short interest as a % of shares outstanding has fallen by over 50%. Meanwhile, the volatility index, $VIX, is down 40% since January 2023. Even during the fastest interest rate hike cycle of all time, volatility trades near record lows.”

Indicating a strong market risk appetite that contrasts with crypto’s poor performance. Market commentator Tomas noted Bitcoin’s sensitivity to Fed liquidity levels, which dropped by $140 billion last week, contributing to Bitcoin’s decline. He suggested that liquidity levels might be near local lows, potentially indicating an upcoming rebound.

S&P 500 vs. total crypto market cap chart. Source: TradingView

Confidence in whale accumulation is growing at $62,000, despite recent order book spoofing causing artificial volatility. While some whale classes increased BTC exposure this quarter, the trend is not uniform. MartyParty argued, “Clear that whales have been buying this dip in record numbers – but the selling volume does not justify the price drops which are manipulated by the market makers, who work for the whales.”

Sentiment, as measured by the Crypto Fear and Greed Index, is nearing its lowest level of 2024 at 51/100, reflecting a significant drop in market mood. A recent uptick in inflows to accumulation addresses began on June 20, signaling potential interest among long-term holders.

Bitcoin sentiment data. Source: Santiment

Santiment highlighted the “rare” fear among Bitcoin market participants, stating, “The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K.” Longtime traders note the sour mood, with Jelle observing it as “worsening by the day,” and IncomeSharks attributing the poor climate to overtrading and emotional decisions.

“BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient.”

As Bitcoin approaches the $60,000 mark, the market faces critical tests in the coming days, with significant economic data releases poised to impact its trajectory.

Image by Bastian Riccardi from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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