BTC price dips 4.5% as US gov’t Bitcoin move raises new sell-off fears
William Suberg6 hours agoBTC price dips 4.5% as US gov’t Bitcoin move raises new sell-off fearsBitcoin falls below $67,000 in an abrupt change of trend after initially hitting $70,000 for the first time in nearly two months.7045 Total views8 Total sharesListen to article 0:00Market UpdateOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin faced major selling pressure after the July 29 Wall Street open as sellers firmly rejected a trip to $70,000.BTC/USD 1-hour chart. Source: TradingViewBitcoin again fails to hold $70,000
Data from Cointelegraph Markets Pro and TradingView tracked a spate of distribution, which sent Bitcoin (BTC) price action down 4.5%.
After slowly gaining throughout both the weekend and first Asia trading session, BTC/USD lost momentum as Wall Street returned, going from local highs of $70,016 on Bitstamp to lows of $66,839.
The move coincided with a fresh transfer from a wallet known to belong to the United States government, involving coins worth around $2 billion.
“Transfer went to a fresh wallet by looks of it which typically is the precursor of OTC related auctions,” popular trader Skew explained in part of his latest X post on the topic, citing data from crypto intelligence firm Arkham.“Keeping an eye on this in case it has real supply impact on price.”US Bitcoin government wallet transactions (screenshot). Source: Arkham
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, struck a weary tone, seeing a repeat pattern of state distribution sabotaging the BTC price uptrend.
“Just when you think all the excess supply dumping is over, the current admin finds another way to screw us,” part of an X response stated.
Analyzing the latest market moves, Skew confirmed mass profit-taking at the highs across order books.
“That push up from spot takers was met with passive spot selling, hence price didn’t sustain above $70K on LTF,” another X post read.
The area above $69,000 represents a psychologically significant price point for Bitcoin, which first appeared as its old 2021 all-time high. Since then, it has played host to significant order book liquidity.
The latest data from monitoring resource CoinGlass confirms that liquidity remains untouched on the day, with price instead dipping to take liquidity below.BTC order book liquidation heatmap (screenshot). Source: CoinGlass
Skew saw additional downside resulting from bulls’ inability to shore up the market at current levels.Source: SkewLower highs spark long-term BTC price concern
Among the more conservative responses was that from popular trader Josh Rager, who warned that a succession of lower highs could result.
Related: US national debt passes $35T — 5 Things to know in Bitcoin this weekSource: Josh Rager
“Choppy price action within the orange box until FOMC on Wednesday? Yes, that’s what it seems to be happening so far,” fellow popular trader CrypNuevo continued, referencing the upcoming Federal Reserve meeting on interest rates.“When there is a big event like this FOMC, markets tend to be choppy until the news come out. Big players step in with caution. Not an easy week.”BTC/USDT chart. Source: CrypNuevo/X
CrypNuevo reuploaded an existing chart showing potential BTC price trajectory around the Fed decision, due on July 31.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Markets# US GovernmentAdd reaction