Bitcoin, 4 July saw a drop of more than 2% due to the first retest of an important support line since October 2023. Data from TradingView highlighted new local lows of $57,885 on centralized exchanges following the latest daily close. Lack of sentiment and steady selling in spot markets created poor conditions for Bitcoin bulls.
What Is Happening on the Bitcoin Front?
Blockchain data analysis platform CoinGlass showed that, at the time of writing, 24-hour Bitcoin long liquidations in the futures markets were approximately $60 million. Commenting on the latest price action, popular trader Skew noted that the BTC/USD pair crossed its 200-day moving average (MA) for the first time in 10 months:
“So far, $63,800 spot selling has been the main driver of this trend since the rejection and reversal of the trend. Therefore, we need to see market demand and signs of reversal for this HTF MA average to act as a systematic trigger for the market. Otherwise, volatility and momentum are moving downward.”
The 200-day MA was at $58,400 at the time of writing and was still slightly below the spot price after a low time frame rise. The DecenTrader team pointed to a significant amount of long liquidations approaching $50,000 if the price drops further:
“If the selling pressure continues on the Bitcoin front, then there remains a significant amount of 3x, 5x, and 10x long position liquidity between $51,000 and $52,000.”
Details on the Subject
Meanwhile, Charles Edwards, founder of crypto asset fund Capriole Investments, saw clear factors affecting the recent negative trend. He argued that Bitcoin has seen significant selling pressure throughout the year, supported by data from blockchain data analysis firm Glassnode. US spot Bitcoin exchange-traded funds launched in January could not absorb these negative effects:
“That’s why we haven’t gone up for months. Saylor, Michael Dell, ETF funds are all noise. When you look at the data of the four most important players in Bitcoin, we have net inflows of $24 billion into the market in 2024.”
Edwards emphasized that he did not see ETF funds as the only demand in the current market.
