BTC price drops 4.5% as US government’s Bitcoin move raises fears of fresh sell-off
Bitcoin (BTC) has faced heavy selling pressure since the July 29 Wall Street open, with sellers strongly rejecting a trip to $70,000.
Bitcoin failed to hold $70,000 again
Data from Cointelegraph Markets Pro and TradingView tracked a wide spread, with BTC price action down 4.5%.
After a slow gain over the weekend and the first Asian trading session, BTC/USD lost momentum as Wall Street bounced back, falling from a local high of $70,016 to $66,839 on Bitstamp.
The move coincided with a new transfer involving nearly $2 billion in coins from a wallet known to be the property of the United States government.
In a recent X post on the topic, popular trader Skew said in part, “Transfers entered a new wallet, which typically precedes OTC related auctions,” citing data from crypto intelligence firm Arkham.
“If it has a real supply impact on price, track this.”
Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriole Investments, struck a weary note as he sees repeated instances of government handouts undermining BTC's rise.
“Just when you think all the oversupply is over, the current administration finds another way to thwart us,” said X's response unit.
Analyzing the recent market movements, Skew has confirmed significant gains in the order books.
Another X post read “That push from spot collectors has been met with actual spot sales, so prices haven't stayed above $70k on LTF.”
The position above $69,000 represents a psychologically significant price point for Bitcoin, which was originally set as the old 2021 all-time high. Since then, it has played with significant order book liquidity.
Recent data from CoinGlass monitoring confirms that liquidity will remain intact throughout the day, with the price dropping below to pick up liquidity.
Skew sees further downside as bulls fail to advance the market at current levels.
Lower highs pose long-term BTC price risk
Among the more conservative responses was prominent trader Josh Rager, who warned that a series of lower highs could result.
Related: US National Debt Passes $35T — 5 Things to Know in Bitcoin This Week
“Choppy price action in the orange box until the FOMC Wednesday? Yes, that's what seems to be happening so far,” continued trader CrypNuevo, referring to the upcoming Federal Reserve meeting on interest rates.
“When there's a big event like the FOMC, the markets are nervous until the news comes out. The big players are cautious. It's not an easy week.”
CrypNuevo re-uploaded an existing chart on July 31st showing the direction of BTC price around the Fed's decision.
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.
