Bitcoin Continues its Decline
Last night, the Bitcoin price fell to the May low of $58,400. The main cryptocurrency started the new trading day with a recovery. What are the reasons for the fall, and what will happen to the price next?
The fall to $58,400 caused liquidations in the entire cryptocurrency market. During the day, about 70,000 traders' positions worth about $300 million were liquidated. Most of the liquidations came from Bitcoin longs. In addition, the Fear and Greed Index entered the "fear" zone for the first time since September 2023.
Some market analysts cite the growing number of traders opening new long positions as the reason for Bitcoin falling below $60,000, causing even more liquidations. In addition, another reason may be the actions of miners, who after halving continue to shut down their equipment and sell off their Bitcoin holdings.
Pressure on the price may also be exerted by the news about the beginning of Mt. Gox payments. In July, the exchange will start returning funds stolen from its customers as a result of a hacker attack in 2014.
At the time of writing, Bitcoin is trading near the $60,770 mark. Key support is at the $60,000 mark. If traders fail to hold it, Bitcoin could fall to the next support level around $51,500.
