Bitcoin (BTC) faced rejection at the daily resistance level of $63,956 on Monday, resulting in a 4.2% decline over the next two days. BTC’s price extends its downward move and falls below $58,000 on Thursday, adding more than 4% losses in the day.
On-chain data indicates whales are taking profits, exchange supplies are increasing, US spot Bitcoin ETFs see outflows, and the Taker Buy Sell Ratio is below one, coinciding with the German Government transferring an additional 3,000 BTC, valued at $172 million, on the same day. This indicates market weakness that may contribute to further price declines in BTC.
The German Government transferred 3,000 $BTC($174M) out again, of which 1,300 $BTC($75.5M) was transferred to #Bitstamp, #Coinbase and #Kraken.
— Lookonchain (@lookonchain) July 4, 2024
German Government currently holds 40,359 $BTC($2.33B).https://t.co/x0aJljKn2C pic.twitter.com/Bk6oDEmGOa
Bitcoin Spot ETF Net Inflow chart
The whale deposited 1,800 $BTC($106M) to #Binance at a loss again 40 minutes ago.
— Lookonchain (@lookonchain) July 4, 2024
He has deposited 5,281 $BTC($323.2M) to #Binance since June 27, with a loss of ~$20M!https://t.co/VWgcfiOpxU pic.twitter.com/WESV8GkfHV
Bitcoin Exchange netflow chart
Bitcoin Network Realized Profit/Loss and Supply on Exchanges chart
Bitcoin Taker Buy Sell Ratio chart
Bitcoin's price was rejected by the daily resistance level at $63,956 on Monday and declined 4.2% in two days. At the time of writing, it continues trading down by more than 4% at around $58,000 on Thursday.
If BTC's price closes below the weekly support level at $58,375, it could decline 3% to revisit its May 1 low of $56,522.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart support this bearish thesis, as both indicators are below their respective neutral levels of 50 and zero. This suggests continued momentum favoring bears, potentially leading to a further decline in the Bitcoin price.
If the bears are aggressive and the overall crypto market outlook is negative, BTC could extend an additional decline of 8% to revisit its daily support at $52,266.
BTC/USDT daily chart
However, if BTC closes above the $63,956 daily resistance level and forms a higher high in the daily time frame, it could indicate that bullish sentiment persists. Such a development may trigger a 5% rise in Bitcoin's price to revisit its next weekly resistance at $67,147.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.