Bitcoin’s recent price fluctuations have stirred anxiety among cryptocurrency traders, as the leading digital asset struggles to maintain its value. As of June 29, 2024, Bitcoin is priced at $60,845, with concerns mounting that it could drop to $55,000.
Dive deeper to explore the factors behind this potential decline and what experts are saying about Bitcoin’s future.
A Rocky June for Bitcoin
At the beginning of June, Bitcoin was priced around $67,719, reaching a peak of $71,000 on June 5. However, the price has since weakened, oscillating between $60,000 and $61,800 this week. The 30-day change shows a -10.1% decline, with a 7-day change of -5.4% and a 24-hour change of -1.0%.
Key Factors Driving Bitcoin’s Decline
Trend Model and Market Behavior: Bitcoin entered a downtrend on June 20, as indicated by trend models. This shift suggests that trend-following funds might intensify their short positions.
Technical Indicators: Weekly and monthly reversal indicators are signaling a potential correction. The weekly Relative Strength Index (RSI), which peaked in early March, has been on a decline. Similarly, the monthly Stochastic indicators resemble previous multi-month peaks, such as those observed in January 2018 and May 2021, suggesting a possible steeper decline.
Double-Top Price Pattern: Bitcoin’s repeated inability to breach higher resistance levels has created a double-top price pattern, a classic signal of a potential drop.
Impact of the Halving Event: Since the halving event on April 20, speculation about Bitcoin’s price trajectory has intensified. Notably, crypto trader Jelle has pointed out parallels with the 2016 halving cycle.
Current Market Phase: Following a historic bull run fueled by the launch of spot US Bitcoin ETFs and the halving event, Bitcoin is currently in a consolidation phase. Since peaking at $73,797 on March 14, BTC has declined by over 16%.
As Bitcoin navigates these turbulent times, the market’s future remains uncertain. Traders and investors alike will be watching closely to see if Bitcoin can stabilize or if further declines are on the horizon.
Read Also: XRP Price: First Stop $5 And Second Stop $11 If BTC And ETH Skyrocket
What are your thoughts on Bitcoin’s future? Will it bounce back or is a steeper decline inevitable? Share your predictions.
