Bitcoin price has been keeping investors on edge lately. Despite the recent gains, BTC, which has fallen below $ 65,000, is at a critical threshold according to analysts. Analyst Miles Deutscher emphasizes that Bitcoin is hovering just above $64,000 on the weekly chart, indicating a potential danger. During its analysis, Deutsche also mentions that the weakening altcoin market compared to Bitcoin is a major source of concern.
Bitcoin price lost support level
Deutscher notes that Bitcoin has lost the mid-level support at $66,500 and a key level of $64,000 is also under threat. According to the analyst, Bitcoin must reclaim $66,500 to capture bullish momentum and then target the range top around $73,000. It is stated that BTC, which currently seems unstable, may potentially follow a downward trend. The $64,000 level is considered a critical support point, and if this support is broken, it is predicted that the price may decline towards the bottom of the $60,000 range.
However, there are positive developments as well. The top three altcoins, excluding Bitcoin and Ethereum, are trading above the key support level of 560. This level is considered a good buying opportunity for many altcoins if it is compatible with individual altcoin charts. Despite the market decline, some altcoins offer buying opportunities in cases of large liquidations, especially for long-term investors.
2021 dynamics also affect the current market
Deutscher states that the relative weakness of altcoins compared to Bitcoin extends to market dynamics in 2021. During the bull run in 2021, the cryptocurrency market witnessed a significant capital inflow, as evidenced by the stablecoin index. This led to high investment activity, especially from venture capital firms (VC), and unprecedented amounts of money were injected into the market.
Pointing to the next important point, the analyst states that a large number of new tokens will be released to the market in early 2024 as the market begins to show signs of recovery. The oversupply created by the creation of more than 1 million new tokens since April 2024 has negatively affected the market despite increased liquidity from Bitcoin ETFs. The increased supply of tokens has diluted the market and negatively affected the performance of altcoins. Since FTX’s collapse, many major altcoins have struggled to match Bitcoin’s performance, with only a few exceptions.
Bitcoin analysis came from Cunningham: Why isn’t the cryptocurrency rising?
Another name that discusses the reasons why Bitcoin remains horizontal around $65,000 is Toby Cunningham, co-host of the Crypto Tips YouTube channel. Cunningham states that this period of “horizontal movement” in which Bitcoin’s price stagnates has led to a lot of speculation about the reasons behind it. According to Cunningham, understanding the fundamental factors during this period can bring clarity to investors and help them make informed decisions.
Cunningham emphasizes that Bitcoin has been in this range for approximately 62 days. Historical data suggests that this period of stagnation may extend further before a significant move occurs, the analyst said. While some attribute the current price movement to the German government’s sale of Bitcoin or regulatory investigations into companies like Jump Trading, Cunningham argues that these factors are not the main determinants.
“Open positions” are effective for the price
According to the cryptocurrency analyst, an important factor affecting the price of Bitcoin is high open positions. This shows that the use of leverage in the system is significant. Cunningham says leverage has been high over the last four months, affecting the market. Additionally, Cunningham frequently criticizes the Fed and its control over the financial system. He emphasizes that the Fed, an unelected institution, has significant influence over the money supply and interest rates.
Despite the stagnant market, Cunningham also notes that “smart whales” are making significant moves. He states that a whale recently purchased 570 Bitcoins worth more than $430 million, indicating confidence in the long-term value of Bitcoin. This suggests that some large investors see this level as an accumulation opportunity, even if the overall market sentiment is pessimistic or uncertain.
Citing Kelly Kellam’s analysis, Cunningham notes that Bitcoin has been in this post-halving range for 62 days, with historical ranges ranging from 40 to 150 days. Given the unique structure of this bull market, he predicts that the current recession could extend further. He advises investors to be patient and focus on Bitcoin’s fundamentals without getting carried away by short-term price fluctuations.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel