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๐จ The Bitcoin Blues: 3 Reasons Why Crypto's King is Struggling to Reach $64K
Hey there, fellow crypto enthusiasts! ๐ I hope you're doing well. I'm sure you've noticed that Bitcoin's price has been taking a hit lately. The past week has been pretty tumultuous, and I'm here to break down why BTC is having a tough time reclaiming $64,000.
1๏ธโฃ Bleeding Spot Bitcoin ETFs: Where's the Love?
Investors are getting cold feet, and it shows! ๐ฅถ Over the past five days, we've seen consecutive outflows from spot Bitcoin ETFs in the US. That's a whopping $900 million withdrawn just last week - the highest outflow activity since late April! ๐
Some ETFs, like Grayscale's GBTC and Fidelity's FBTC, have seen significant outflows, while others, like BlackRock's IBIT, are still seeing inflows. The trading volume for these ETFs has also decreased, suggesting a waning interest in Bitcoin.
2๏ธโฃ Declining Network Activity: Is Bitcoin Losing Its Luster?
The daily active addresses on the Bitcoin network have plummeted by 35% over the last 90 days! ๐ That's a huge decrease in onchain activity, indicating a decline in demand for BTC within the ecosystem. This, in turn, puts pressure on the price.
3๏ธโฃ Key Support Levels Crumble: The Technical Takedown
Bitcoin's price has been in a downward spiral since it hit a resistance level of $72,000 on June 7. Since then, it has lost key support levels, including the 50- and 10-day exponential moving averages (EMAs). The last line of defense was the 200-day EMA, which has now been breached, accompanied by a 15% increase in daily trading volumes.
What's next? Keep an eye on the $60,000 and $56,500 levels, which could provide some support. However, if we break through these, it could lead to further sell-offs.
So, what's the verdict? It's tough out there for Bitcoin right now, and these three factors are contributing to its price struggles. Let's keep a close eye on how things develop and adjust our strategies accordingly! ๐
What do you think is driving Bitcoin's price action? Share your thoughts in the comments below! ๐ฌ
Happy trading, and stay safe out there! ๐