Bitcoin Faces Churches as It Plunges Below $113K
Bitcoin has taken a hit lately. It’s down 1.5% in the past 24 hours adn lost over 5% within a week. This fall has reversed its earlier gains, dropping from an all-time high of $124,128.
The reasons behind this are twofold. First, long-term holders are cashing out post-rally profits. second, short-term investors are getting rid of their coins at a loss due to panic.
A CryptoQuant report reveals that around 50,026 BTC flowed into exchanges from new investors in two days, a sign of panic. This flood increased selling pressure, accelerating the price drop.
- Institutional investors are also selling:
- Over $523 million has flowed out of US-listed Bitcoin ETFs.
This marks a shift from the previous week’s inflows and adds to the downward spiral.
Demand for Bitcoin is cooling off. On-chain data indicates less activity compared to previous periods. Retail sentiment is turning bearish too.
data suggests this bearish outlook hasn’t been seen as mid-June,when geoeconomic fears sparked panic.
However, there’s hope on the horizon.Technical analyst Rekt Capital claims Bitcoin is following past trends. Similar pullbacks were followed by rallies in 2017 and 2021.
This pullback might act as a rejuvenating reset before a possible surge, hinting that Bitcoin could soon climb again.
