CoinDesk Report:
Bitcoin fell below $60,000 on July 4th. The massive Bitcoin crash significantly impacted altcoins.
On July 4th, the world’s largest cryptocurrency, Bitcoin, dropped over 3.4%, breaching the crucial $60,000 level.
Following this major crash, veteran trader and analyst Peter Brandt identified bearish flags and extreme price movements on BTC charts.
Peter’s post underscored bearish sentiments, accompanied by a chart revealing Bitcoin breaking not only major support levels but also bear flag patterns.
Why did Bitcoin fall?
However, the potential cause behind BTC’s sharp decline may lie in the latest developments from Bloomberg ETF expert James Seyffart.
On July 4th, James posted on X, indicating a low likelihood of the U.S. Securities and Exchange Commission (SEC) approving an Ethereum spot ETF before the expected launch date.
James stated,
“I currently have low confidence in these release dates. No final deadlines & Corp Fin at the SEC is taking its time (not blaming them). But these changes are tiny, which is why the ETF hasn’t been ready to launch in weeks.”
Bitcoin’s Impact on Altcoins
After Bitcoin’s large-scale crash, top altcoins including Ethereum, Solana, BNB, XRP, and Dogecoin saw significant price drops.
According to CoinMarketCap data, over the past 24 hours, ETH, SOL, BNB, XRP, and DOGE prices fell by 4.8%, 10%, 6%, 5.5%, and 6.5%, respectively.
Additionally, according to on-chain analytics firm CoinGlass, Bitcoin’s Open Interest (OI) decreased by 3.5%, sparking fear in the market amid Bitcoin’s price decline.
Bitcoin Technical and Price Performance Analysis
According to expert technical analysis, Bitcoin appears bearish, currently at the 200 EMA (Exponential Moving Average).
While the 200 EMA may offer support, current market sentiment and investor interest suggest a bleak outlook for BTC.
Read Bitcoin’s [BTC] Price Forecast 2024-25
If BTC closes daily candle below the 200 EMA and the $57,700 level within the daily timeframe, we might witness a significant 8% drop to $53,000 in the coming days.
Furthermore, according to Coinglass data, if this occurs, nearly $1 billion worth of long positions could be liquidated.