New Bitcoin Bottom Price – Why is BTC Going Down?

Bitcoin traders are experiencing a rollercoaster of a year, with the coin prices going up and down and hitting record levels. After reaching Bitcoin’s highest price ever, the cryptocurrency MVP has been sharply declining over the last two weeks.

Are market bears taking over bulls this time? What is happening to the Bitcoin price?

The Bitcoin spot ETF euphoria seems to be dwindling as the crypto market steadily plunges. Most coins, including the leading BTC, ETH, BNB, and SOL, are losing momentum and dropping the massive values they garnered over the past few months.

Let’s analyze the reasons behind the Bitcoin bottom price and what the future holds for crypto traders.

Why is Bitcoin’s Price Dropping?

Bitcoin started the year on a high note, as the cryptocurrency broke its all-time high price in Q1 2024, reaching $73,000 for the first time in the coin’s history. This impressive run was attributed to the approval of BTC ETF spot trading applications, the Bitcoin halving event in April, and the Ethereum spot ETF approval.

These events saw traders achieving massive Bitcoin yearly returns, as the coin reached the $70,000 mark at least once a month from March through June. 

However, unlike other short-term drops after every peak, the current drop has been consistent since the beginning of June until the day of writing. The ongoing market meltdown saw Bitcoin going down from $70,000 to less than $60,000 in three weeks.

Significant BTC Market Events

There are a few events that triggered this coin decline. The first one is that every previous decline was followed by an awaited event that amassed investors’ expectations and buying power. However, this time, no more massive events await traders, causing a declined interest for short-term traders.

Besides this speculative reason, two events have triggered this move.

Starting on 21 June, the German government sold hundreds of millions worth of Bitcoin seized from illegal piracy websites. These transactions are reported to have returned approximately $400 million to the crypto market, flattening the Bitcoin price and dropping its value.

Another event is the recovery program issued by Mt. Gox, a Japanese crypto exchange, which was hacked in 2011 and bankrupt in 2014. After a decade, the company could finally reimburse its clients who lost their crypto holdings, mainly in Bitcoin and BTC Cash.

The exchange transferred millions of Bitcoins from cold wallets to clients, who are expected to capitalize on the massive coin valuation over the years and sell their holdings to realize net gains. This move triggered a selling pressure on the overall market.

Bitcoin Price Analysis: Short-Term vs Long-Term

Let’s look at the BTC/USD TradingView price chart and analyse the long-term and short-term trends. We use the exponential moving average (EMA) indicator over different time lapses.

We start with the 50-EMA and 100-EMA to analyze short-term trends. The market price crosses below both lines as the trend goes for a new Bitcoin bottom price under $60,000.

When we compare the 50-EMA (blue) line with the 100-EMA (yellow) line, we see the blue line is above, indicating a bullish move. However, it points downward and towards the yellow line, which means a possible bearish sentiment. 

Let’s understand the strength of this trend by comparing the 50-EMA with the 200-EMA. We see a significant diversion between both lines. 

The yellow line lies below the market price with a rising trend, while the blue line is declining towards the coin and yellow line. This suggests a downward trend, but both lines seem unlikely to intersect, minimizing the possibility of massive selling activity.

Conclusion

The crypto market is experiencing a new decline, and the Bitcoin bottom price level makes investors confused about cryptocurrencies’ future. This tremble comes after the new highs BTC experienced in the last few months.

The drop under the $60,000 mark caused many doubters to liquidate their Bitcoin positions. However, this decline is probably a slight recovery after the recent market boom and significant events that increased the coin supply.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies, including meme coins, carries ingrained risks, and individuals should conduct their own research before making any investment decisions.