On the evening of June 24, Bitcoin experienced an unexpected sharp drop, beyond the expected range.
The opening price of the day was $63,300, and the lowest price fell to $60,500, a drop of 2,800 points. In particular, a large negative line at 5 pm directly crushed the morale of the bulls.
Trend analysis
Bitcoin's support level is around $62,000, but it has now fallen below it. If it falls below $60,000, it may mean that this year's upward trend may come to an end, and the next interest rate cut by the Federal Reserve needs to be waited for.
Previously, some Federal Reserve officials expected at least one interest rate cut this year.
Reasons for today's decline
This week, the net outflow of ETF funds reached $545 million, and there was an outflow of funds for 8 consecutive trading days, showing investors' risk aversion.
The Mentougou incident, involving the 10-year Mt.Gox case, is gradually coming to an end. The final payment deadline is currently expected to be October 31, 2024, and there may be pressure to sell Bitcoin worth billions of dollars.
The market situation is ever-changing. In the absence of a clear market trend, all trading directions are somewhat speculative, so you need to be cautious every time you enter the market.
