Singapore-based cryptocurrency trading firm QCP Capital released its latest market analysis, observing that Bitcoin has encountered selling pressure, causing it to drop below the $60,000 support level and trading as low as $57,875.
Furthermore, there are indications that Bitcoin miners are capitulating, a phenomenon historically linked to price bottoms. The last hash rate drawdown comparable to this occurred in 2022, when BTC traded at $17,000. However, despite the recent cryptocurrency sell-off, the options market remains optimistic, with interest favoring ETH Calls for September and December expirations.
The company highlighted several factors that could potentially break the current downtrend in prices. These include the presence of liquidation clusters on BTC and ETH favoring the upside, which could lead to potential short squeezes. Additionally, the imminent approvals of S-1 Forms could trigger a rebound in ETH prices.
The United States Securities and Exchange Commission (SEC) greenlighted 19b-4 forms for eight spot Ethereum ETFs on May 23rd. Asset managers are now awaiting the effectiveness of their S-1 statements before trading can begin, following a two-step process. Recently, the SEC provided “light comments” on S-1 forms to several potential Ethereum ETF issuers, possibly marking the final round of feedback.
Therefore, QCP Capital outlines that considering the selling pressure stemming from BTC, influenced by factors such as Mt. Gox, miners, and government regulations, ETH shows potential for a stronger rebound, particularly in light of forthcoming S-1 filings.
QCP Asia Colour – 4 July 24
1/ Yet another day of heavy selling pressure, causing BTC to fall below the 60k support level and reaching lows of 57,875.
— QCP Capital (@qcpcapital) July 4, 2024
Cryptocurrency Market Sees Bearish Trend As Bitcoin And Ethereum Prices Decline
At present, Bitcoin is trading at $57,625, reflecting a decrease of more than 5.12% over the past 24 hours. During this period, the cryptocurrency reached a low of $57,397 and a high of $60,529. Bitcoin’s dominance in the market increased by 0.13% to 53.24% over the day, indicating a subdued movement in the altcoin market. Concurrently, BTC’s market capitalization stood at $1.13 trillion.
Meanwhile, ETH is currently trading at $3,161, showing a decrease of more than 6.22% over the last 24 hours. During this period, its lowest point was $3,134, while it reached a peak of $3,343.
The cryptocurrency market has predominantly seen bearish movements, with Ethereum (ETH), Solana (SOL), and XRP following Bitcoin’s downward trend. The global cryptocurrency market capitalization decreased by 5.26% to reach $2.13 trillion. Despite this decline, the total market volume surged by 56.14% to $89.89 billion, according to data from CoinMarketCap.
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