Key Takeaways
- Bitcoin has broken its 200-day moving average for the first time in 10 months.
- Spot selling has driven the recent decline in Bitcoin prices.
- Net flows equivalent to $24 billion have been dumped on the market in 2024.
Bitcoin fell over 2% on July 4, breaking below a crucial support level for the first time since October 2023.
The BTC/USD pair reached new local lows of $57,885 on Bitstamp following a bearish daily close.
Spot market selling
Steady selling from spot markets has been cited as the primary reason for the latest price decline.
Data from CoinGlass indicated nearly $60 million in Bitcoin long liquidations over the past 24 hours.
Popular trader Skew highlighted that Bitcoin had crossed its 200-day moving average (MA) for the first time in 10 months. “Spot selling has been the main driver of this trend,” he explained, emphasizing the need for market demand and reversal signs to stabilize the price.
At the time of writing, the 200-day MA was at $58,400, slightly below the current spot price.
Liquidation levels
Trading suite DecenTrader warned that if Bitcoin breaks further down, it could hit significant liquidation levels around $51,000 to $52,000. Conversely, shorts liquidity is situated at $76,000 to $78,000.
Charles Edwards, founder of Capriole Investments, pointed to substantial sell-side pressure throughout the year. He noted that U.S. spot Bitcoin ETFs, launched in January, have been unable to counterbalance this pressure:
When you look at the data of the four most important players in Bitcoin, we have net flows equivalent to $24 billion being dumped on the market in 2024.
Despite the recent downturn, Bitcoin’s long-term prospects remain influenced by market demand and major players’ activities.
