Bitcoin Price Drops Below $62,000 After Initial Rise

Cryptocurrencies started Monday with an upward trend, but today things turned around, and the price fell below $62,000 again. Given that uncertainty dominates the market sentiment, the direction of the price remains unclear. Amidst all this, leading companies and analysts in the market are commenting on the BTC outlook.

What is the Bitcoin Price?

Bitcoin is experiencing a recovery, but technical indicators suggest things are not going well.

In this context, a chart published by the well-known investment research firm Game of Trades on July 2nd drew attention. After approximately four months, the BTC price returned to the channel around the $62,000 region, worrying investors.

Bitcoin returned to its rising channel after four months. The downside risk increases until the channel resistance is regained.

Market indicators revealed that Bitcoin has experienced two consecutive 20% correction movements since the ATH seen in March. This situation appeared contrary when compared to 2023 and the early period of 2024.

We expected Bitcoin to return to the channel and then likely continue the bull market. May of this year was a great time to buy Bitcoin.

Bitcoin-S&P 500 Discrepancy

Bitcoin’s technical indicators’ decline was concerning for Game of Trades, and their statements indicated that further declines could occur. However, there were also comments suggesting this could be a bear trap. Despite all this, the divergence between Bitcoin and the S&P 500 did not go unnoticed.

We last saw such a strong divergence between Bitcoin and the stock market in January 2024 and January 2023. In both cases, Bitcoin eventually caught up with the S&P 500. However, in November 2021, it was the S&P 500 that caught up with Bitcoin.

Despite the bearish outlook in the market, data showed that Bitcoin whales continued to sell in recent months. This indicates behavior opposite to what was seen in 2022.

As of the time of writing, Bitcoin’s price indicated that things were not going well. BTC fell back to $61,800 from the $63,000 level it had risen to yesterday.