Bitcoin price breaks 200-day trend line for first time in 10 months
Bitcoin fell more than 2 percent on July 4 as it saw a key support line tested for the first time since October 2023.
“Spot selling” is responsible for the latest BTC price spike.
Data from Cointelegraph Markets Pro and TradingView have charted new local lows on Bitstamp after its latest daily close of $57,885.
Lack of sentiment and constant selling from spot markets have created unfavorable conditions for Bitcoin bulls.
Data from monitoring resources CoinGlass puts the 24-hour Bitcoin (BTC) long liquidity at nearly $60 million at the time of writing.
Commenting on recent price action, popular trader Skew noted that BTC/USD has crossed the 200-day moving average (MA) for the first time in 10 months.
“The reversal of the trend so far and the reversal to the $63.8K selling position is the main driver of this trend,” he explained in part in a post on X.
“So for this HTF MA to really act as a strategic trigger for the market, we need to see market demand and reversal signals. Another volatility and momentum move to the downside.”
The 200-day EMA is sitting at $58,400 at the time of writing, still below the spot price after the lower timeframe.
Zooming in, trading aggregator DecenTrader sees big long liquidity around $50,000 if the price breaks down further.
“*If Bitcoin breaks $51k – $52k there will be 3x, 5x and 10x long liquidity positions left. Upside, shorts liquidity is at $76k-78k,” he said.
Sales value of 24 billion dollars
For his part, Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriole Investments, sees clear factors influencing the recent downside.
Related: Was Under $60K a Bear Trap? 5 things to know in Bitcoin this week
Bitcoin, he argued from the data side of the onchain analysis firm Glassnode, have been seeing significant sell-side pressure throughout the year. Bitcoin exchange-traded funds (ETFs), launched in the United States in January, failed to take the brunt.
“That's why we haven't landed on the moon yet. Saylor, Michael Dell, ETFs. It's all noise,” X told his followers.
“When you look at the data of the 4 most important players in Bitcoin, we have net flows equal to $24B in the market by 2024.”
Edwards did not view the ETF as a “single interest” in the current market.
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.
