The price of Bitcoin (BTC-USD) continues to fall as the cryptocurrency hit its lowest point since February. The recent slump is due to the anticipated selling pressure that would be caused by major institutions—such as governments, creditors of a failed exchange, and struggling crypto miners—should they decide to cash in on their holdings.
In fact, the failed Mt. Gox exchange administrators are returning $8 billion worth of Bitcoin to creditors, while German authorities might sell some of the 50,000 Bitcoin they seized from online criminals. Furthermore, miners are likely under pressure from shareholders to sell due to decreasing profitability.
As a result, the digital asset fell as low as $53,528 before recovering to about $56,260 at the time of writing. Most cryptocurrencies followed suit, which highlights Bitcoin’s influence on the entire industry.
However, experts like Willy Chuang, the chief operating officer at crypto exchange WOO X, believe that the selling pressure is a short-term issue and that the long-term impact may be less severe as the market adjusts, according to Bloomberg. Additionally, Caroline Mauron of Orbit Markets noted that the return of U.S. investors from the July 4 holiday is expected to bring some stability.
BTC Technical Analysis
According to TipRanks’ Bitcoin Technical Analysis tool, Bitcoin’s moving averages indicate a Strong Sell. Indeed, Bitcoin’s 50-day exponential moving average is $64,677.78, while the Bitcoin price currently sits below this average. This is a key number that many traders watch – when the price is below the moving average, it usually means the market is in a downtrend.
