Bitcoin’s Tumble Sparks Market Fear: Is This a Buying Opportunity or Further Downside?

Bears seized control of the Bitcoin market in the past 24 hours, pushing the leading digital asset below the $61,000 mark. BTC failed to hold the $63,000 support level and plunged over 3%, dragging other cryptocurrencies down with it.

Data reveals that the Bitcoin market suffered over $36 million in liquidations in the last 24 hours, with $33 million in long positions and $3.67 million in short positions wiped out. According to CoinMarketCap, Bitcoin’s trading volume rose 1.63%, reaching around $22 billion.

BTC has been on a steady decline since the start of June. At the time of writing, Bitcoin is 17.39% below its all-time high of $73,000, achieved in March 2024.

This downturn coincides with the German government’s transfer of 832.7 Bitcoin in four separate transactions on July 2nd, raising concerns that the government might be offloading its BTC holdings. The Fear and Greed Index currently stands at 50, indicating a neutral market sentiment.

A TradingView chart provides further insight into Bitcoin’s price action. The Relative Strength Index (RSI) for Bitcoin is 37.98, confirming that selling pressure outweighs buying pressure. The trajectory of the line suggests that lower prices are likely if the $60,000 level fails to hold.

However, this bearish RSI zone could present a buying opportunity for some investors. Bitcoin’s trading volume has been steadily declining as the Bitcoin exchange-traded fund (ETF) hype appears to have subsided.

Meanwhile, the broader crypto market also experienced a bearish trend. Ether saw $33 million (long $29.86 million, short $3.4 million) in liquidations over the past 24 hours.