Bitcoin’s attractive drop
|Market picture
The cryptocurrency market was falling to a total capitalisation of $2.2 trillion at the end of Monday but managed to add over 2% to the lows, recovering to $2.25 trillion, down 0.5% from the day before.
The technical picture in Bitcoin is almost perfect. The low price of $58.2K coincided with the lower boundary of the descending range, was as close to the 200-day moving average as possible, and almost duplicated the impulsive lows of early May. On the daily charts on Monday, BTC closed in the oversold RSI area, and today, it is already trying to get out of it. All this looks like a tempting signal to buy this dip. However, it may well turn out to be a bull trap, although we give less priority to such a scenario.
Bitcoin's share of the total crypto market capitalisation is near 54%. Since March, there has been an acceleration in the decline of the share of "other" coins, as buyers' interest has focused on the leading coins. Such dynamics are typical signs of the first half of the 4-year cycle in Bitcoin, and sustained interest in altcoins may not come until next year.
News background
Bitcoin fell below $60,000 amid news of the Mt.Gox payout. The trustee of the bankrupt 2014 exchange, Mt.Gox, announced plans to begin paying out compensation in Bitcoin, Bitcoin Cash and cash in early July. Mt.Gox is expected to distribute more than $9 billion in assets by 31 October 2024.
According to CoinShares, investments in crypto funds fell by $584 million last week after an outflow of $600 million a week earlier; the two-week decline came after five weeks of inflows. Bitcoin investments were down $630 million; Ethereum was down $58 million.
According to Deribit, the options market has been betting on Ethereum, which will rise to $4,000 by September.
Block CEO Jack Dorsey said he sees Bitcoin not just as a currency but as the dominant global reserve asset that could topple the U.S. dollar.
Cryptocurrency and NFT holders in The Open Network (TON) ecosystem have faced massive phishing attacks to steal assets. Malicious links and malicious bots are being spread in Telegram groups, particularly under the guise of airdrop announcements.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.