NOIDA (CoinChapter.com)—Bitcoin’s price dropped $64,000 on April 25 as the token failed to cope with the intense bearish pressure it has been facing recently. Middle East conflict and macroeconomic forces could be the reason why Bitcoin’s price is down today.
Moreover, according to K33 Research, the potential sale of a large amount of Bitcoin by the creditors of the bankrupt platform Mt. Gox introduces additional market uncertainty. This impending distribution could lead to fears of an oversupply in the market, putting downward pressure on Bitcoin’s price.
Mt.Gox is expected to distribute its assets of 142,000 BTC, 143,000 BCH, and 69 billion yen to customers by 31 October 2024. Lenders will start receiving bitcoins as early as next month.
On-Chain Bearish Cues Could Be Why Bitcoin Is Down Today
Recently, Bitcoin’s on-chain data has surfaced bearish signals that could spell unease for market participants. A significant cue comes from the net volume of Bitcoin transferred to exchanges.
Over the past few days, the amount of Bitcoin going into exchange wallets has increased.
Historically, an uptick in such transfers often precedes a selling event, indicating that holders are gearing up to cash out.
Concurrently, the whale addresses holding more than 1,000 BTC have shown a declining trend, suggesting that the Bitcoin whales might be distributing their holdings, potentially leading to increased selling pressure in the market.
Though it is possible that the whales moved their holdings to hardware cold wallets or something similar, a drop in the metric often creates bearish pressure for Bitcoin.
Moreover, the Bitcoin Realized Profit by Wallet Size metric revealed that larger wallet sizes are realizing profits. Although a normal part of market cycles, it can also indicate a near-term profit-taking trend among seasoned investors.
When coupled with other bearish signals, these profit-taking activities might suggest a broader trend of market caution.
BTC Price Drops Below $64,000
Bears succeeded in pushing the token below $64,000, resulting in its drop of nearly 3% to a daily low near $62,800
If the bears gain more control over Bitcoin, the BTC price could drop to the 100-day EMA (blue wave) support near $59,000. Moreover, the onchain bearish cues could cause traders to panic, resulting in the token testing support near $53,200 before recovering.
On the other hand, the post-halving optimism might be able to drive Bitcoin’s price to resistance near $68,600. Breaking and consolidating above the immediate support could induce confidence in BTC’s post-halving price run, helping the token target resistance near $75,400
The relative strength index, or RSI, remained neutral for BTC, clocking at 43.95 on the daily charts.
