Bitcoin experienced a significant drop on Monday, June 24, reaching a new 40-day low of $62,667. This decline comes as institutional investors shift their attention towards Ethereum and the booming stock markets. Let’s take a look at how Bitcoin’s price could react in the upcoming week.
Last week, Bitcoin had a negative performance, resulting in a market capitalization loss of over $150 billion and a 12% decrease between June 15 and June 21. Over the weekend, bears continued to dominate the Bitcoin markets, setting the stage for a challenging start to the week.
Recent news about Ethereum ETFs and positive movements in the US stock markets, led by NVIDIA, a major AI-chips manufacturer, have diverted investors’ focus away from Bitcoin in recent days.
Looking at the price action, Bitcoin reached a peak of $65,026 on Friday, June 21, as bulls attempted to break through the $65,000 resistance level. However, the bears quickly took control, resulting in a 3.66% downtrend over the weekend.
Taking a broader perspective, Bitcoin’s decline to a 40-day low of $62,667 on Monday, June 24, means that it has now dropped by 13% since the current correction phase began on June 7.
One possible explanation for the recent price downtrend is the reduced trading activity of whale investors in Bitcoin. While the attention has been on Ethereum ETFs and stock prices, a closer look at Bitcoin’s on-chain trends reveals that whale investors cutting back on their trading activity may have played a significant role in the price decline.
Data from IntoTheBlock’s Large Transactions Count indicates that the number of large transactions exceeding $100,000 has been steadily declining since March 2024, when Bitcoin first tested all-time highs above $72,000. The total number of unique whale transactions on June 23 was 4,580, the lowest in 8 months.
Whale transactions are crucial for providing liquidity to cryptocurrency markets. The significant decrease in these transactions means that panic sellers now have less liquidity available for high-volume sell-offs without causing major price dips.
As a result, Bitcoin’s price is at risk of further downward movements towards $60,000 in the coming days due to the decline in whale transactions.
It’s important to note that this article is for informational purposes only and should not be considered financial advice. The author’s opinions expressed in this article do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.