Bitcoin Takes a Tumble: A Look at the Asian Market Slump and Predictions for the Future
Summary:
Bitcoin experienced a slump in the Asian trading session on June 11, shedding 3% and dropping to lows of $67,320. Noted traders and analysts attribute this to a lack of substantial support at the significant $69,000 mark and the relinquishing of the 21-day moving average. Future volatility could be influenced by upcoming US macroeconomic data and the Federal Reserve's decisions. However, some traders opine that large-volume traders may prevent Bitcoin from slipping below $65,000.
Bitcoin experienced a trading slump on June 11 during the Asian market hours, as forecasts predicted a possible further plunge in the cryptocurrency's price. This downward trajectory saw Bitcoin drop by 3% to a low of $67,320 on Bitstamp after the closure of daily trade. Bitcoin's fall was primarily attributed to the lack of significant support at the crucial $69,000 mark, with investor interest insufficient to counteract the downward trend through light liquidity in the exchange order book.
Keith Alan, the co-founder of Material Indicators, opined that the absence of substantial bids could negatively impact Bitcoin’s price performance. According to Alan, there lacks a dense concentration of bid support, which remains relatively light even down to the $60,000 mark. His assessment was based on the observation of Bitcoin's liquidity on the global crypto stock exchange, Binance.
The trading resource platform, Material Indicators, subsequently reported on Twitter that Bitcoin's recent downturn indicates an official rejection of $69,000 as a support level, along with the relinquishment of the 21-day moving average, indicating a significant short-term trend.
Material Indicators further stated that this drop is not yet over, hinting at price fluctuations due to potential significant announcements by the Federal Reserve and upcoming economic reports.
With market observers closely following macroeconomic data from the United States, including the Consumer Price Index (CPI), Producer Price Index (PPI), and Federal Reserve's latest decisions on interest rates, volatility in Bitcoin and other cryptocurrency prices could ensue. Commenting on the situation, Skew, a noted trader, suggested that the next few days may be eventful.
However, well-known trader Credible Crypto disagreed with the majority, indicating that Bitcoin might not drop as low as $60,000. He suggested that large volume traders who habitually control market liquidity could protect Bitcoin from slipping below the $65,000 mark.
Until further assurance of a significant reversal, Credible Crypto believes that Bitcoin might evade the expected downturn in prices, commenting: “No guarantees, of course, but we will know soon enough with developing Price Action over the next 24 or so hours.”
Remember, this article does not offer investment advice or recommendations. Investments and trading moves come with risks, and readers must conduct thorough research before making any decision.
Published At
6/11/2024 11:15:00 AM
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