Bitcoin
Bitcoin (BTC-USD) Continues Slump Amid Selloff Fears
The price of Bitcoin (BTC-USD) continues to fall as the cryptocurrency has hit its lowest point since February. The recent drop is due to the anticipated selling pressure that would be caused by large institutions — such as governments, creditors of a failed exchange and struggling cryptocurrency miners — should they decide to cash in on their holdings.
In fact, failure Mt. Gox Exchange Administrators Are Returning $8 Billion in Bitcoin to Creditorswhile German authorities may sell some of the 50,000 Bitcoins they seized from online criminals. In addition, miners are likely under pressure from shareholders to sell due to declining profitability.
As a result, the digital asset dropped to $53,528 before recovering to around $56,260 at the time of writing. Most cryptocurrencies followed suit, which highlights Bitcoin’s influence across the industry.
However, experts such as Willy Chuang, chief operating officer of cryptocurrency exchange WOO X, believe that the selling pressure is a short-term issue and that the long-term impact could be less severe as the market adjusts, according to Bloomberg. Additionally, Caroline Mauron of Orbit Markets noted that the return of U.S. investors from the July 4 holiday should bring some stability.
BTC Technical Analysis
According to TipRanks Bitcoin Technical Analysis According to the tool, Bitcoin’s moving averages are indicating a Strong Sell. In fact, Bitcoin’s 50-day exponential moving average is $64,677.78, while the price of Bitcoin is currently below this average. This is a key number that many traders look at – when the price is below the moving average, it usually means that the market is in a downtrend.