Bitcoin Tumbles Toward $62k – Is the Bull Run Over?

BySamson Ononeme

Jun 24, 2024
Bitcoin price drops below $58,000, influenced by impending Mt. Gox repayments and U.S. economic factors. Analysts note psychological importance of $60,000 level and debate July rebound potential.

Key Insights

  • Bitcoin and major cryptocurrencies experience significant price drops, with Bitcoin falling 3% toward $62,000.
  • Technical analysts identify a bearish double top pattern in Bitcoin’s chart, warning of potential further declines to $50,000 or even $45,000.
  • Market weakness attributed to $1 billion in sales from large holders, $1 billion in Bitcoin ETF outflows, and competition from a strong U.S. dollar and tech stocks.

NEW YORK (MarketsXplora) – Bitcoin and other major cryptocurrencies faced a significant downturn over the weekend, erasing last week’s gains and triggering a wave of liquidations in the crypto derivatives market.

The world’s largest cryptocurrency by market capitalization dropped 3% in the past 24 hours, trading at $62,202 on Monday morning. This decline extended one of bitcoin’s worst weekly performances this year, with prices retreating from their recent peak near $70,000.

The sell-off wasn’t limited to bitcoin. Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB) all registered similar losses, while Solana’s SOL plummeted 7% to trade at approximately $120. Popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) also suffered, each shedding about 5% of their value.

The market downturn resulted in over $150 million worth of long positions being liquidated, compared to a relatively modest $9 million in short position losses. This disparity highlights the bullish sentiment that had been prevalent among traders.

Is a Steeper Correction Looming?

Technical analysts point to a potentially bearish double-top formation in bitcoin’s price chart. Markus Thielen, founder of 10x Research, warned, “This formation could easily see a drop to $50,000β€”if not $45,000.”

Technical analysts identify a bearish double top pattern in Bitcoin's chart, warning of potential further declines to $50,000 or even $45,000.

Several factors are contributing to the current market weakness. Large holders have sold approximately $1 billion worth of bitcoin in recent weeks, while U.S.-listed bitcoin ETFs experienced over $1 billion in net outflows last week alone. Additionally, a strengthening U.S. dollar and a robust technology stock market have diverted investor attention from cryptocurrencies.

The crypto market now faces a crucial week ahead of key economic data releases that could influence the Federal Reserve’s interest rate decisions.

While some analysts anticipate bullish momentum later in the year due to the upcoming U.S. election and Consumer Price Index (CPI) data, Thielen cautioned, “We can still have a steeper correction” in the near term.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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