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Why is the price of Bitcoin falling today?
The price of Bitcoin is plummeting heavily! Altcoins are bleeding! The entire cryptocurrency market capitalization was reduced by almost 2%, suggesting that a bearish trade is in play. Furthermore, ETF outflows have exceeded inflow counts and the growing dominance of altcoins can be considered one of the main reasons for the decline. However, there is speculation that BTC price will reach $60,000 in the next few days, which seems to happen anytime this week.
At the end of the week, the BTC price was struggling hard to recover $65,000 but collapsed below the key support level of $63,500. Furthermore, the token saw a continuous decline until the price marked a low of around $62,634, which can be attributed to many factors such as profit-taking by investors, negative market news, ETFs, etc. Technically, BTC price entered a bearish range with limited recovery in the last week of Q2 20204.
Bitcoin price fell below the ascending trend line, which had been highly supportive for over a couple of months. Unfortunately, the levels have hit the lower bands of the Gaussian Channel, which indicates the start of a bearish period. Furthermore, the Ichimoku cloud is about to send out a sell signal as the levels are about to undergo a bearish crossover. The other factor contributing to the bearish continuation is the declining OBV.
OBV or on-balance volume is a volume-based indicator used to evaluate the subsequent price action of the token that has fallen below fundamental support. The lowered levels suggest that the token is undergoing distribution, signaling a bearish breakout. Furthermore, volume is also decreasing, which supports the bearish narrative. Furthermore, the price enters the capitulation phase again.
Hash tapes indicate when miners are in deep trouble and might capitulate. This usually occurs when the price of BTC is at significant lows, which can also be a good buying opportunity. The indicator considers the 30-day and 60-day SMA and a bearish crossover signals the start of the capitulation phase, as happened a couple of days earlier.
Overall, Bitcoin (BTC) price continues to remain in deep trouble and is headed towards new lows below $60,000 before the end of the quarter.