On July 4 bitcoin experienced a dip of over 2%, testing a key support line for the first time since October 2023.

Data from Cointelegraph Markets Pro and TradingView revealed new local lows of $57,885 on Bitstamp following the latest daily close.

This decline was driven by a lack of positive sentiment and consistent selling pressure from spot markets, creating a challenging environment for Bitcoin bulls.

CoinGlass reported that 24-hour Bitcoin long liquidations approached $60 million at the time of writing.

Popular trader Skew noted that BTC/USD had crossed its 200-day moving average (MA) for the first time in ten months.

“So far since trend rejection & reversal around $63.8K spot selling has been the main driver of this trend,” he explained on X.

“So in order for this HTF MA to actually act as a systematic trigger for the market we need to see market demand & reversal signs. Else volatility & momentum pick up to the downside.”

At the time of writing, the 200-day MA was at $58,400, slightly below the spot price after a brief low timeframe bounce.

READ MORE: Bitcoin Drops Below $60,000 Amid Potential $9 Billion Mt. Gox Payout and Whale Activity

Looking at the broader picture, trading suite DecenTrader highlighted a significant amount of long liquidations closer to $50,000 if the price continues to decline.

“If Bitcoin does breakdown then $51k – $52k remains the area where there is a significant amount of 3x, 5x, and 10x longs liquidity. To the upside, the shorts liquidity is at $76k-78k,” it noted.

Charles Edwards, founder of Capriole Investments, pointed to clear factors influencing Bitcoin’s recent downside.

Alongside data from on-chain analytics firm Glassnode, he observed significant sell-side pressure throughout the year.

The launch of United States spot Bitcoin exchange-traded funds (ETFs) in January had failed to absorb this pressure.

“This is why we haven’t mooned yet. Saylor, Michael Dell, ETFs. It’s all noise,” he told his followers on X.

“When you look at the data of the 4 most important players in Bitcoin, we have net flows equivalent to $24B being dumped on the market in 2024.”

Edwards emphasized that ETFs are not the only demand factor in the current market.

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