Bitcoin's price has fallen sharply recently, falling below $60,000, raising fears of a bottom. Analysts at Altcoin Daily suggest that a break through the support at $62,000 could lead to further decline, potentially reaching levels near $52,000.
Despite this correction, historical data shows Bitcoin facing similar downturns, with a decline of 23% and 18% in February 2023 and April-May 2024, respectively.
But what is encouraging this illegal dumping behavior? Let's analyze the main factors that are pushing Bitcoin to its lowest price.
Understanding Bitcoin Dumping
Support level breakdown
One of the main reasons for Bitcoin's decline is the collapse of key support levels. Bitcoin failed to maintain the $62,000 support level, causing selling pressure and causing the price to plummet. Support levels are very important in determining market sentiment, and violations of support levels often lead to increased selling activity.
choppy market
Bitcoin prices are highly susceptible to market fluctuations, which can be further exacerbated by external factors such as macroeconomic events and regulatory announcements. For example, the upcoming US FOMC meeting has increased uncertainty and contributed to the recent price decline. Investors may choose to sell their Bitcoin holdings in anticipation of market volatility.
Furthermore, the recent economic downturn can be attributed to the conclusion of two important stories in the cryptocurrency space: the Bitcoin halving and the launch of BlackRock's ETF. While these events are essential to Bitcoin's long-term prospects, their immediate impact has caused a cooling period for the market.
technical factors
Technical analysis indicators such as moving averages and chart patterns reveal Bitcoin price declines. A technical breakdown below the moving average or trend line prompts an automated sell order, increasing losses. Bitcoin's prolonged price decline and sideways trading has put selling pressure on support levels. Bitcoin fell below the essential support level of $60,000. The price was around $57,000, the lowest in two months, suggesting further declines.
Regulatory concerns
Additionally, concerns about regulatory oversight, particularly from the US SEC, are increasing downward pressure on Bitcoin prices. Lawmakers like Patrick McHenry have accused SEC Chairman Gary Gensler of misleading Congress regarding cryptocurrencies like Ethereum, increasing uncertainty in the regulatory environment.
Market forecast
Standard Chartered Bank expects Bitcoin to fall to $50,000 due to outflows and liquidity issues in the US Spot Bitcoin ETF. They expect it to reach $150,000 by the end of the year and $1 million by 2025. Altcoins could fall against the Bitcoin pair in the coming months. Despite this short-term correction, there is still room for long-term optimism in the crypto market.
BlackRock’s continued investment in tokenization funds and the inevitable launch of the US Spot Ethereum ETF demonstrate growing institutional interest in the space. Additionally, technological advances such as Coinbase's support for the Lightning Network highlight the continued development and adoption of cryptocurrencies.
