On July 4, 2024, the overall cryptocurrency market experienced a massive downturn, however, the world’s biggest cryptocurrency Bitcoin(BTC) tanked more than 3.5% in the last 24 hours. The potential reason behind this massive downside move is the recent breakdown of the support level near $60,000 and the Mt. Gox BTC repayment update.
Impact of Bitcoin Breakdown on Altcoins
Following this massive price drop in BTC, the overall cryptocurrency market was significantly impacted. Top altcoins including Ethereum (ETH), Solana (SOL), BNB (BNB), XRP (XRP), and Dogecoin (DOGE) experienced massive price drops. According to coinmarketcap data, in the last 24 hours ETH, SOL, BNB, and XRP have experienced a price drop of 4.8%, 10%, 6%, and 5.5% respectively.
Source: Coinmarketcap
Amid this massive price drop, bulls have liquidated their $280 million worth of long positions in the last 24 hours, according to an on-chain analytic firm Coinglass. At the time of press, BTC is trading near the $58,800 level, and in the last 24 hours, it experienced 3.4% of downside momentum. Whereas, the 24-hour trading volume jumps by 56% signaling a higher traders’ and investors’ participation in BTC following price drop.
If we look at the performance of BTC over a longer period, in the last 7 days it lost nearly 7% of gain. Whereas, in the last 30 days, BTC has lost more than 15% of its gains.
Bitcoin technical analysis and key levels
According to expert technical analysis, BTC is looking bearish and currently, it is getting a strong support of 200 EMA (Exponential Moving Average). If BTC on a daily time frame gives a strong daily candle closing below 200 EMA, then there is a high possibility that we may see a significant price drop of over 8% to $53,000 in the coming days.
However, this $53,000 level is a strong support for BTC if it fails to sustain this current level. Additionally, if BTC reaches this level then nearly $1 billion worth of long positions will be liquidated as per data from CoinGlass. Following the recent breakdown of the support level, short sellers are more active as they have placed notable bids on the short side. Whereas, long buyers are comparably lower.
Besides this fear and massive selling pressure in the market, on July 4, 2024, James Seyffart Bloomberg ETF expert stated there is a low possibility that the US SEC will approve a spot Ethereum ETF (Exchange Traded Fund) by the predicted launch dates.
