Bitcoin (BTC) experienced a significant drop below $64,000 on June 21, marking the first time in over a month. The cryptocurrency opened at $64,840 but fell to an intra-day low of $63,451. The last time Bitcoin traded below $64,000 was on May 15, when it reached a swing high of $71,980 after rising from a low of $61,299. This surge was fueled by anticipation surrounding the approval of a spot Ether (ETH) exchange-traded fund (ETF).
Currently, Bitcoin is trading at $63,552, reflecting a 3.54% decrease in the past 24 hours. The broader crypto market capitalization has also fallen by 3.24% to $2.33 trillion, with Ether (ETH) experiencing a 2.25% decline to $3,475.
Several factors contribute to Bitcoin’s correction in the market. One of the main reasons is the withdrawal of capital from spot Bitcoin ETFs, indicating investors’ risk-off sentiment. On June 19, spot Bitcoin ETFs in the U.S. recorded outflows for the fifth consecutive day, totaling $900 million for the week, the highest outflow activity since late April. Grayscale’s GBTC and Fidelity’s FBTC led the outflows with $53.1 million and $51.1 million, respectively. In contrast, BlackRock’s IBIT was the only ETF with net inflows of $1.5 million.
Another factor impacting Bitcoin’s price is the declining network activity, which suggests reduced demand. Glassnode data shows a 35% decrease in daily active addresses on the Bitcoin network over the past 90 days, from 971,789 addresses on April 4 to 632,620 on June 20. This decline in onchain activity indicates a waning demand for BTC within the ecosystem.
From a technical perspective, Bitcoin’s price decline is part of a broader correction that began after it was rejected at the $72,000 resistance level on June 7. During this correction, BTC has lost key support levels, including the 50- and 10-day exponential moving averages (EMAs) at $66,724 and $66,594, respectively. The 200-day EMA at $64,294 served as the last line of defense for Bitcoin, but it is now being breached, accompanied by a 15% increase in daily trading volumes, signaling a continuation of the sell-off.
Key levels to monitor on the downside are $60,000 and the $56,500 swing low. It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment or trading decisions.