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<p>The cryptocurrency market is trembling as <a href="https://coingape.com/price/bitcoin">Bitcoin price</a> experienced a dramatic over 7% decline, sending ripples of anxiety among investors. With experts predicting even steeper losses, the flagship cryptocurrency is poised for a challenging period. Key thresholds and critical levels have been highlighted, painting a picture of uncertainty for the market. Let’s delve into the untold story behind this Bitcoin price crash.</p> 
<h2 id="strong-current-market-performance-of-bitcoin-price-strong"><strong>Current Market Performance of Bitcoin Price</strong></h2> 
<p><img decoding="async" class="aligncenter size-full wp-image-206079" src="https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715.png" alt="Current Bitcoin Price Action" width="2100" height="1324" srcset="https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715.png 2100w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-300x189.png 300w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-1224x772.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-768x484.png 768w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-1536x968.png 1536w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-2048x1291.png 2048w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-125715-150x95.png 150w" sizes="(max-width: 2100px) 100vw, 2100px"></p> 
<p>BTC price has dropped by 5.96% in the past day to trade today at $53,998.63. The leading coin has also seen a decline in value by 12.02% and 23.93%, over the past week and month respectively. The market cap has also dropped to $1.06 trillion, with an increased trading volume of 24.00%, over the past 24 hours.</p> 
<h2 id="strong-causes-behind-the-bitcoin-price-drop-strong"><strong>Causes Behind the Bitcoin Price Drop</strong></h2> 
<p>The imminent repayments from <a rel="nofollow" href="https://www.mtgox.com/img/pdf/20240624_announcement_en.pdf" target="_blank">Mt. Gox</a>, scheduled for early July, could exert further downward pressure. Arkham Intelligence reported that wallets associated with Mt. Gox have made test transactions in preparation for the massive distribution of over $9.4 billion intended to repay more than 127,000 creditors.</p> 
<p>Additionally, the recent plunge in Bitcoin’s value is attributed to several major factors. The <a href="https://coingape.com/breaking-german-govt-dumps-400-btc-to-major-exchanges-transfer-spree-continues/">German</a> government recently liquidated approximately 1,300 BTC, worth $75.53 million, increasing selling pressure on the market. This transaction was executed through exchanges like Bitstamp, Coinbase, and Kraken.</p> 
<p>Bitcoin’s fall below the 200-day moving average, set at $58,492, has intensified investor concerns. This breach triggered massive liquidations in the derivatives market, reaching $100.4 million, including $86 million in long positions forced to close. Bitfinex analysts also noted a decoupling of Bitcoin from US equities, which adds to the market’s woes.</p> 
<h2 id="strong-the-pessimistic-predictions-for-bitcoin-price-strong"><strong>The Pessimistic Predictions for Bitcoin Price</strong></h2> 
<p>Various crypto analysts have warned the market about the possibility of BTC dropping further, below $50,000. An analyst named Alex Kuptsikevich from FxPro expresses a negative perspective. He observes that Bitcoin has dropped below both the descending channel’s lower limit and the 200-day moving average. Kuptsikevich suggests that the chance of a decrease to $51,500 is higher than the chance of an increase to $65,800.</p> 
<p>The historically poor performance of the third quarter, especially in August and September, could worsen Bitcoin’s current situation. Richard Galvin, who is one of the co-founders of Digital Asset Capital Management, mentions that a Democratic candidate who is not as supportive of cryptocurrencies as Joe Biden could impact the decrease in value.</p> 
<p>Markus Thielen, the founder and CEO of <a rel="nofollow" href="https://x.com/10x_Research/status/1805135718299443417" target="_blank">10x Research</a>, stressed the significance of the $60,000 psychological level for miners as well as buyers of Bitcoin Spot ETFs. Thielen cautions that only traders lacking proper information are ready to purchase at this point. Breaking this support level may result in a significant decrease to $50,000.</p> 
<figure id="attachment_206091" aria-describedby="caption-attachment-206091" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="wp-image-206091 size-full" src="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-fall-to-50.png" alt="Bitcoin price chart" width="1123" height="769" srcset="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-fall-to-50.png 1123w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-fall-to-50-300x205.png 300w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-fall-to-50-768x526.png 768w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-fall-to-50-150x103.png 150w" sizes="(max-width: 1123px) 100vw, 1123px">
 <figcaption id="caption-attachment-206091" class="wp-caption-text">
  Bitcoin price chart
 </figcaption>
</figure> 
<p><a rel="nofollow" href="https://x.com/Rewkang/status/1808545114622677300?" target="_blank">Andrew Kang</a>, a renowned investor in the industry, forecasted a more severe decline. He initially predicted a drop to $50,000, but now sees a potential decrease to $40,000, followed by several months of instability before a potential positive rebound.</p> 
<h2 id="strong-why-this-drop-is-just-the-beginning-strong"><strong>Why This Drop is Just the Beginning</strong></h2> 
<h3 id="strong-1-seasonal-weakness-and-historical-patterns-strong"><strong>1. Seasonal Weakness and Historical Patterns</strong></h3> 
<p>The third quarter has historically been a challenging period for Bitcoin. August and September, in particular, are months where Bitcoin often underperforms. This seasonal weakness suggests that the current drop may be part of a larger trend, with further declines likely before any potential recovery.</p> 
<h3 id="strong-2-political-and-economic-uncertainty-strong"><strong>2. Political and Economic Uncertainty</strong></h3> 
<p>The potential shift in the political landscape with a less crypto-friendly Democratic candidate replacing Joe Biden could have significant implications for Bitcoin.</p> 
<p>Regulatory changes and political sentiment play crucial roles in shaping market confidence and investor behavior.</p> 
<h3 id="strong-3-market-sentiment-and-psychological-thresholds-strong"><strong>3. Market Sentiment and Psychological Thresholds</strong></h3> 
<p>Psychological thresholds, such as the $60,000 mark, play a crucial role in market dynamics. The breach of such levels can trigger <a href="https://coingape.com/blog/how-one-crypto-whale-is-turning-market-panic-into-profit/">panic</a> selling and exacerbate downward pressure.</p> 
<p>With market sentiment already fragile, any further negative news could accelerate the decline.</p> 
<h3 id="strong-4-technical-indicators-and-chart-patterns-strong"><strong>4. Technical Indicators and Chart Patterns</strong></h3> 
<p>Technical indicators also paint a bleak picture. Bitcoin breaking below its descending channel and 200-day moving average are significant bearish signals. These technical factors suggest that the market may continue to see downward momentum.</p> 
<h2 id="strong-preparing-for-the-future-strong"><strong>Preparing for the Future</strong></h2> 
<p>Investors need to be ready for ongoing volatility during Bitcoin’s decline. Tactics involve spreading out investments, staying updated, placing stop-loss orders, assessing long-term possibilities, and seeking advice from a financial advisor for tailored guidance. Diversification reduces risks, and decision-making is enhanced by staying updated and analyzing market factors.</p> 
<p>Seeking advice from a financial advisor can provide personalized direction depending on personal financial circumstances and objectives, assisting in navigating volatile periods in the market. Large losses can be avoided by putting stop-loss orders, by selling cryptocurrencies at set prices.</p> 
<p>History shows that, BTC has demonstrated resilience by bouncing back from price crashes.</p> 
<h2 id="strong-conclusion-strong"><strong>Conclusion</strong></h2> 
<p>The current decline in Bitcoin’s price is not only a short-term obstacle, but something more significant. Based on historical trends, political unrest, and technical signals pointing towards more drops, it seems that we are only at the start of what could be a lengthy period of instability. By staying updated and implementing strategic actions, investors can navigate this difficult period and potentially come out stronger.</p> 
<p>The post <a href="https://coingape.com/blog/is-bitcoin-price-crash-far-from-over-here-is-the-untold-story/">Is Bitcoin Price Crash Far from Over? Here is the Untold Story</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Is Bitcoin Price Crash Far from Over? Here is the Untold Story

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