The crypto market is down again, with the Bitcoin price testing the $60,000 support level for the 9th time and momentarily dipping below the crucial mark.
Fortunately for the bulls, BTC has climbed back up to $60,500, temporarily invalidating the worst-case scenario of falling to $48,000.
Large-cap altcoins have also suffered heavy losses, with Dogwifhat, Ethereum Name Service and Brett all down by double digits.
The crypto market crash has pushed investors towards presale projects again, considering they are not impacted by short-term price action. New cryptocurrencies such as WienerAI and Pepe Unchained continue to be in high demand, from retailers and savvy investors alike.
Why Is Crypto Down Today?
Opinions are split over the crypto market is down today.
A few experts believe that the Bitcoin price simply closed last week’s CME Gap. CME Gaps form on weekends and represent the difference between BTC’s closing price on the Chicago Mercantile Exchange on Friday and its opening price when trading resumes on Monday.
The phenomenon occurs because CME - like the rest of the stock market - does not trade on weekends, unlike Bitcoin.
#Bitcoin With the succesful double CME Gap fill ✅ pic.twitter.com/aKnBKPsxiq
— Daan Crypto Trades (@DaanCrypto) July 3, 2024
Other traders believe that BTC’s downside move today is largely benign, with the price simply back-testing the demand zone.
However, several experts are much more cautious with Bitcoin’s continued retesting of the $60,000 support.
For instance, crypto analyst Nebraskangooner (@Nebraskangooner) believes that BTC is in the danger zone in the weekly time frame. He believes that a weekly close below $60,000 could result in a larger correction.
Similarly, popular trader DonAlt (@CryptoDonAlt) has called $60,000 a “shitty support” level, which may not hold for much longer. For him, the Bitcoin price needs to reclaim the $63,800 resistance or risk a major price crash to $52,000.
$BTC update:Shitty bearish retest did its jobNot sure if shitty support is gonna do its job againMakes sense to be cautious everything until $63.8 is regained or until lower supports are hitUntil then assuming risk is off pic.twitter.com/wruaRFX2c3
— DonAlt (@CryptoDonAlt) July 3, 2024
A report from Forbes is also attributing BTC’s weakness to broader macroeconomic risks. It refers to Fed Chair Jerome Powell’s recent claims that the US deficit is at an unsustainable level.
Is A Larger Correction Due For Bitcoin?
The crypto market being down again has led to several investors wondering if another larger correction is coming.
Experts believe that the scenario is not out of the question. For instance, popular trader Daan Crypto Trades (@DaanCrypto) believes that the market may face another scare once Mt. Gox starts its rehabilitation program. He expects to be strong selling pressure at the start, which would eventually taper down.
However, most experts remain in consensus that the weakness in Bitcoin is temporary and only presents buy-the-dip opportunities.
For instance, while Fed Chair Jerome Powell did give a warning about the US deficit levels, he also signalled that the disinflation trend may be resuming, which increases the odds of larger-than-expected rate cuts this year. This would be a decidedly bullish scenario for Bitcoin and major altcoins.
The selling pressure from miners also appears to be slowing down. For instance, Marathon Digital, the largest Bitcoin miner in the world, did not sell any BTC in June.
Marathon Digital, the world’s largest #Bitcoin miner, didn’t sell any $BTC in June, holding 18,536 Bitcoin worth over $1.1 billion. pic.twitter.com/0QUd2dXoZr
— Cointelegraph (@Cointelegraph) July 3, 2024
More importantly, the Bitcoin price continues to hold strong above the $60,000 level in the short term. Any one of the retests could potentially be the last before a major upside move towards new all-time highs.
Crypto Presales In High Demand
Bitcoin’s weakness has not had any impact on the high demand for crypto presales. On the contrary, investors continue to stack such tokens as they remain indifferent to short-term price action.
For instance, WienerAI has hit the $7 million mark today in its ICO, thanks to its combination of AI and memes.
In fact, AI tokens and meme coins are the two most in-demand niches during this bull cycle, which explains the strong early demand for WAI.
Similar to Floki, the project is set to launch its own AI-powered trading bot. Token holders can receive alpha trading signals, MEV protection and seamless swaps, all at no extra cost. WienerAI is portraying its new bot as the ChatGPT for crypto.
Owing to its unique value proposition, experts are bullish on WAI’s upside potential, with some even anticipating 100x gains.
Similarly, a new alternative to Pepe - Pepe Unchained (PEPU) - has hit the $2 million milestone this week in its ICO.
The new meme coin has introduced an innovative concept - launching its own Layer-2 blockchain for lower trading fees, faster transactions and high staking rewards. Indeed, the PEPU staking pool is currently offering an APY of nearly 900%.
https://pepeunchained.com/en/dashboard
Considering that even utility-less Pepe copycats are seeing significant growth, smart money traders also have high hopes for Pepe Unchained.
Both projects were recently featured on Cointelegraph, Bitcoin.com, here at CryptoDaily, and across a range of other leading crypto news outlets.
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