3 Reasons Why Bitcoin Price Struggles to Reach $64,000
Bitcoin (BTC) fell below $64,000 on June 21 for the first time in over a month. According to data from Cointelegraph Markets Pro and TradingView, BTC fell from opening at $64,840 to an intraday low of $63,451.
The last time Bitcoin price traded below $64,000 was on May 15th, after rising from a low of $61,299, before swinging to $71,980 on May 21st, due to approval of the Ethereum (ETH) Exchange Traded Fund (ETF). .
At the time of publication, the largest cryptocurrency by market capitalization was trading at $63,552, down 3.54% in the last 24 hours.
The broader crypto market capitalization fell 3.24% over the same period to settle at $2.33 trillion, while Ether (ETH) fell 2.25% to $3,475.
Let's take a look at some of the reasons why Bitcoin is leading the market in a correction.
Bleeding Space Bitcoin ETFs are weighted by BTC price.
Investors' risk aversion is evident in Bitcoin ETFs, where investors have been pouring their capital for days.
On June 19, Bitcoin ETFs in the U.S. recorded their fifth consecutive day of gains, bringing their weekly total to $900 million. This is the highest outflow activity since late April.
According to data from crypto research platform SoSoValue, 10 listed ETFs lost around $140 million on June 20.
Greyscale's GBTC, which has seen mostly outflows since converting to an ETF on January 10, led the way with $53.1 million in spending, followed by Fidelity's FBTC with $51.1 million. VanEck's ETF reported net outflows of $4 million, while funds from Invesco and Galaxy Digital saw net outflows of $2 million.
BlackRock's IBIT, the largest ETF by assets, is the only product with total revenue of $1.5 million. Other funds from ARK Invest, Valkyrie, Franklin Templeton, WisdomTree and Hashdex recorded zero inflows.
On June 20, the spot's total trading volume of Bitcoin ETFs reached $1.16 billion, down from $1.7 billion on June 18. The market is closed on June 19 for a public holiday.
Falling network activity supports Bitcoin's downside
Another reason why the price of Bitcoin will continue to fall is because of the decline in network activity that could reduce the demand.
According to Glassnode data, daily active addresses on the Bitcoin network dropped from 971,789 addresses on April 4 to 632,620 on June 20. This represents a 35% decline in the last 90 days.
Prominent analyst Ali Martinez has noted the reduced activity on the Bitcoin blockchain. In a June 21 post on the X social network, Glassnode shared a chart showing the trend of Bitcoin exchange flow rates going down over the past three months.
“Bitcoin is experiencing a decline in onchain activity relative to the currency, indicating a decrease in investor demand for BTC and a decrease in network usage.”
A decrease in onchain activity suggests that the demand for BTC in the ecosystem is decreasing, which weighs on its price.
Bitcoin price misses key support levels.
From a technical point of view, Bitcoin's price decline is part of a broader correction that began today after the rejection of the $72,000 resistance level on June 7. During this fall, BTC lost key support levels including the 50 and 10-day breakout. Moving Averages (EMAs), which are currently at $66,724 and $66,594, respectively.
The 200-day EMA ($64,294) provided the last line of defense for Bitcoin.
At the time of publication, the price of BTC violated the support provided by the 200-day EMA, increasing the daily trading volume by 15%, which indicates the activation of the continuation of the sale.
On the low side, key levels to watch at $60,000 and a low swing of $56,500.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
