Here’s Why, Bitcoin experiences a sharp decline
Today on July 3, 2024, the overall cryptocurrency market plunged by more than 2.5%, and the world’s biggest cryptocurrency Bitcoin (BTC) also experienced a sharp decline. However, the potential reason behind this sharp decline is a whale who recently dumped a massive 1,023 BTC worth $62.2 million onto Binance, as reported by an on-chain analytic firm Lookonchain.Whale moves $62.2M of BTC to Crypto exchange
Lookonchain also added that the same whale has dumped approximately 1,723 BTC worth $106 million, on Binance in the last 24 hours. This dump coincided with the opening of the Tokyo market. Following this massive sell-off, the BTC has fallen by more than 3.2% in the last 24 hours.
The whale deposited 1,023
Additionally, the possible reason for this dump may be the Singapore-based QCP Capital. On July 2, 2024, in a Telegram broadcast, QCP Capital expressed concern over potential large BTC sales following distributions by the bankrupt Mt. Gox exchange, scheduled to begin this week.
Mt. Gox, infamous for a 2014 hack that led to the theft of 140,000 BTC from its clients, will start repaying creditors in July 2024. This distribution, in Bitcoin and Bitcoin cash (BCH), could increase selling pressure on the markets. Besides this bearish outlook, some traders maintain a long-term bullish view expecting a potential rally to $150,000 once the Mt. Gox overhang is resolved.
Additionally, another possible reason for this dump is the continuous Bitcoin movement from the German government to centralized exchanges since June 19, 2024.Bitcoin technical and price-performance analysis
Following all these updates, BTC is currently trading near the $60,500 level and it experienced a 3.3% price drop. However, since morning the price has continuously fallen and it went from $$62,800 to $60,500 level. Additionally, the recent dump by the whale also caused a significant $4.26 million of liquidation in the last 1 hour.
If we look at the performance of BTC over a longer period, in the 7 days BTC has remained stable and experienced a 1.4% price drop. Whereas, in the last 30 days, BTC lost more than 12% of its gain.
According to expert technical analysis, Bitcoin is looking bearish and is testing a crucial support level of $60,000. If Bitcoin on a daily time frame gives a daily candle closing below the $60,000 level then in the coming days, we may see a massive price fall to the $53,200 level. However, the current sentiment is bearish, and short sellers are higher than long buyers, according to the data from CoinGlass.