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Bitcoin Price Drops to $66K, Will BTC Fall Even Further?

source-logo  thenewscrypto.com 14 June 2024 08:46, UTC
  • Bitcoin fell over 3% in 24 hours, dropping from $68,337 to $66,304.
  • Bitcoin ETFs saw outflows totaling $226.21 million in a single day.

Bitcoin (BTC), the premier cryptocurrency, has displayed significant volatility this week, falling over 3% in the past 24 hours to touch $66,304 after a brief recovery to $68,000 on Thursday. This drop comes in the wake of the Federal Reserve’s decision to maintain the interest rate at 5.25% to 5.50%, which has overshadowed BTC’s performance in the market.

Earlier in the week, Bitcoin surged nearly to $72,000 but failed to sustain its momentum, dropping sharply afterward. Also, the cryptocurrency has struggled to reach new highs since its peak of $73,798 in March, driven by strong inflows into U.S. exchange-traded funds (ETFs).

Contributing to the recent decline, on June 13, Bitcoin ETFs saw outflows, with $226.21 million withdrawn in a single day. Grayscale Investments’ GBTC experienced a $62 million outflow, while Fidelity’s FBTC faced a $106 million outflow, marking its second outflow since inception. However, BlackRock’s Bitcoin ETF recorded an $18 million inflow, contrasting the overall trend of withdrawals. Currently, IBIT manages $17.63 billion in Bitcoin ETF assets.

Analyzing the Next Possible BTC Price Levels

At the time of writing, Bitcoin traded at $67,045 with a daily trading volume of around $26.70 billion. The June 14 flash crash pushed Bitcoin below the ascending parallel channel, losing key support levels. Currently, BTC is trying to stay above the 100-day EMA at $67,128. Falling below this could lead to further declines, with crucial levels at $65,500 and $64,800.

Bitcoin (BTC) Price Chart: 4-H (Source: TradingView)

The breach below $64,500 could push Bitcoin into a bearish phase, targeting a low of $63,000. A further drop would lead BTC to the $60,000 demand zone, representing a 15% decrease from its all-time high price.

Conversely, for Bitcoin to recover, bulls need to push the price above the 50-day EMA at $67,800., with key resistance levels of $68,500 and $69,250. If the upward trend continues, holding above these levels will trigger more gains up to $72,500 and possibly a new all-time high between $74,000 and $74,500.