The fluctuation in the leading cryptocurrency continues, and the price has dropped to the $60,000 base, falling below $60,400. The BTC outlook, which undermines investors‘ risk appetite, has been affected by many adversities. The expected positive atmosphere with the ETH ETF listing has reversed again, and this happened once more at the hands of the SEC.
Current State of Cryptocurrencies
The SEC has now filed a lawsuit against MetaMask, one of Ethereum‘s biggest supporters. It was expected that the process would not continue to litigation after the approval of the ETH ETF, but the opposite happened. Bitcoin is stuck in a wide range, but the expected adversities in the coming days favor the bears. Germany, the US Silkroad, and MTGOX returns bring the risk of a gradual sale of approximately $15 billion.
Considering the declining volumes, the potential for sales is substantial. Bulls do not ignore the risk of a drop to $56,552. According to Farside data, ETFs have continued to see net outflows for the past three days.
Santiment data indicates that social sentiment on the BTC front has weakened significantly due to the failure to surpass $73,777. The weakening enthusiasm is essentially a positive detail in identifying the market bottom.
Bitcoin (BTC) Commentary
Bitwise Chief Investment Officer Matt Hougan wrote in his latest assessment that he expects a net inflow of $15 billion for the ETH ETF in 18 months. This is significant for the overall market sentiment. Returning to BTC price predictions, we see that buyers could not hold above $62,500. This indicates that the price should fall below $60,000.
For now, since the bulls have not allowed this, we can expect the narrow range movement to continue for a while longer. The first strong upward signal will come with closures above $62,500. After that, the path to targets of $64,602 and $70,000 will open. However, closures below $60,000 could have annoying consequences.
In the last drop, $58,500 attracted strong buyer interest. However, the strong sales expected in July, the potential exits they could trigger in the ETF channel, and the traditionally low volumes in the summer months are concerning for the bulls. This could lead to the testing of the key $56,552 support in closures below $60,000.
A break and closure below the last support will target $50,000. Those worried about this possibility have been reducing their risks in altcoins for a long time.
