- Bitcoin’s price briefly dropped to $64k, prompting heavy liquidation in the crypto market, particularly among long traders, totaling $464 million in a day, with $402 million from long positions.
- US-based spot Bitcoin ETFs saw significant outflows following a hawkish Fed meeting, indicating a shift in sentiment and increased volatility, while analysts anticipate a potential rebound with Bitcoin needing to maintain a price above $67k to invalidate further correction.
In the volatile world of cryptocurrencies, Tuesday opened with a bearish outlook for Bitcoin (BTC) as the flagship coin briefly dropped to as low as $64k during the early Asian session. This downturn triggered heavy liquidations in the crypto market, predominantly affecting long traders. As of the London session, Bitcoin has stabilized around $65,600.
Spot Bitcoin ETFs Cash Flows Signals More Pain Ahead
Recent data from US-based spot Bitcoin ETFs paints a grim picture. Following a hawkish Federal Reserve meeting, these ETFs saw significant cash outflows. On Monday alone, the outflow totaled $145 million. Notable losers include Fidelity’s FBTC, which saw a $92 million outflow, and Ark’s ARKB with a $50 million outflow. In contrast, Grayscale’s GBTC only saw a $3 million outflow. This shift suggests that investors are wary, and the sentiment towards Bitcoin is turning bearish.
Heavy Crypto Liquidation and Altcoin Sell-off
The decline in Bitcoin’s price led to heavy liquidations in the leveraged crypto market, amounting to $464 million within a single day. Out of this, approximately $402 million were from long traders. The heightened volatility has pushed investors towards stablecoins, with USDT alone seeing a daily trading volume of over $63 billion, surpassing that of Bitcoin and Ethereum combined.
What Next for BTC Price Action?
There's a chance our $BTC bottom is in with this SFP.
— CrediBULL Crypto (@CredibleCrypto) June 18, 2024
Below is what I am watching for now.
Yes, we can still technically go lower into the "dream long" zone below, but as I've previously said it would not surprise me to see that zone front run.
That being said, you sell the… pic.twitter.com/cI6moqbadJ
Despite the recent downturn, there’s optimism among some analysts. Credibull Crypto, a prominent crypto analyst, suggests that the bottom of the ongoing Bitcoin correction might be in, hinting at a potential market rebound in the near term. However, for this to happen, Bitcoin needs to maintain a consistent closing price above $67k to prevent further corrections.
From a technical standpoint, Bitcoin could find support in the $57k to $61k range if the bearish trend persists. The current Bitcoin dominance of around 56.18% indicates a potential trigger for Altseason, which many anticipate will come once Bitcoin’s dominance weakens.
The Future of Altcoins Amidst Bitcoin’s Volatility
📊 Bitcoin holders have just had their biggest 3-day drop in non-empty wallets since just prior to the March 14th all-time high. Unlike then, BTC has been sliding, provoking traders to liquidate for fear of further drops. Meanwhile, Ethereum wallets keep growing in number. pic.twitter.com/UIfXLkJ1HH
— Santiment (@santimentfeed) June 18, 2024
Analysts from Santiment are noting increased negative sentiment towards altcoins amidst Bitcoin’s turbulent behavior. This could present an opportunity for patient traders to buy the dip in preparation for an expected parabolic rally. Moreover, the imminent listing of spot Ether ETFs in the US in July is expected to increase the number of unique addresses in the Ethereum ecosystem, potentially boosting interest in altcoins.
The recent turbulence in Bitcoin’s price has sent shockwaves across the cryptocurrency market, triggering heavy liquidations and a notable sell-off in altcoins. While some analysts remain cautiously optimistic about a potential rebound, the overall sentiment remains bearish in the short term. Investors and traders alike are advised to exercise caution and stay informed about the market’s rapidly changing dynamics. As always in the world of cryptocurrencies, volatility is the name of the game.
