Bitcoin Price at $66,000; Why it’s Down Today?

Bitcoin's price drops to $66,000, sparking questions about the cryptocurrency market's current trend

Crypto news: After failing to climb beyond $71,272 in recent weeks, Bitcoin's (BTC) price has pushed the altcoin market to substantial losses. According to the most recent market statistics, the cryptocurrency market valuation fell by more than $200 billion in the last 24 hours, to around $2.65 trillion.

As of now, the price of Bitcoin stands at $66,547 reflecting a decrease of 4.44% in the last 24 hours. This movement has resulted in a market capitalization of $1.31 trillion for Bitcoin. Year-to-date, Bitcoin has experienced a 58.18% change in price.

Price analysis:

Bitcoin faced significant resistance near the $70,000 mark and struggled to maintain a position above it. As a result, the price declined below $67,000 and even tested the $66,000 support level, reaching a low of around $65,992. However, there is now an attempt at recovery as bulls have stepped in at around $65,700. Despite this, Bitcoin's price is currently trading below $66,500 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of BTC/USD, a bearish trend line is forming with resistance near $70,000. A Relative Strength Index (RSI) value of 33.62 for Bitcoin suggests that it is approaching an oversold condition.

If the price manages to surpass the $70,000 resistance zone and the trend line, it could signal a fresh increase, potentially pushing the price toward the $71,000 resistance zone. The next low timeframe resistance level after that is around $71,500.

Bitcin(BTC) predictions:

Martin Shkreli, a polarizing figure in the pharmaceutical industry, has made a bold prediction regarding Bitcoin, stating that there is a 75% chance it will reach $1 million by the end of 2024. Despite being convicted of fraud in 2015, Shkreli stands by his forecast, rejecting any April Fools' jokes and declining bets offered, believing he can get better odds on the markets. While he has not disclosed the reasoning behind his prediction, other financial heavyweights like Cathie Wood and Robert Kiyosaki have also made optimistic forecasts for Bitcoin. Wood, CEO of ARK Invest, predicts Bitcoin could surpass a million before 2030, attributing the rise to increasing institutional involvement. Kiyosaki maintains his forecast of $100,000 by June 2024, betting on a potential collapse of the dollar and traditional markets. Tim Draper and Anthony Scaramucci also anticipate significant appreciation for Bitcoin. Despite skepticism, Shkreli's prediction adds to the growing sentiment that Bitcoin could see remarkable growth in the coming years, highlighting the evolving landscape of cryptocurrency and traditional financial markets.

Top reasons for Bitcoin dropping:

The recent sudden downturn in Bitcoin's price, leading to a drop below $66,000, has left many investors shocked and wondering about the underlying causes. Three key factors appear to be driving this decline.

Firstly, high levels of funding and open interest in the Bitcoin ecosystem have raised concerns. These metrics suggest an abundance of leveraged positions, making Bitcoin susceptible to price manipulation. Large holders of Bitcoin, known as whales, may exploit this situation by selling off their holdings, triggering a price drop. This has resulted in a total liquidation of $157 million in the Bitcoin network in just one hour, with long orders accounting for $144 million.

Secondly, the outflows from the Grayscale Bitcoin Trust (GBTC) have contributed to the price decline. GBTC, a popular investment vehicle for institutional investors seeking exposure to Bitcoin, has experienced decreased demand. This trend has affected Bitcoin's price, which is currently trading around $66,608. Ethereum has also seen a significant decline, briefly dropping to $3,319 before stabilizing. The sharp price decrease has led to widespread liquidations across the crypto price market.

Lastly, Bitcoin's historical patterns, particularly its tendency to undergo price corrections before halving events, may be playing a role. Bitcoin's halving, which occurs roughly every four years, is scheduled for April 18th this month. This historical trend, combined with high leverage in the market and institutional outflows, appears to have contributed to the recent drop in Bitcoin's price.