Bitcoin faced massive selling pressure after Wall Street opened on July 29, with sellers stubbornly resisting a rally to $70,000.
Bitcoin fails to hold $70K again
A series of distributions have been tracked that have caused the Bitcoin (BTC) price to drop by 4.5%, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD made a slow gain throughout the weekend and the first Asian trading session, but lost momentum as Wall Street rebounded, falling from a high of $70,016 to a low of $66,839 on Bitstamp.
The move coincided with the transfer of roughly $2 billion worth of coins from a wallet known to belong to the U.S. government.
Popular trader Skew cited data from cryptocurrency intelligence firm Arkham in a recent X post on the topic, explaining that “apparently, it was sent to a new wallet, which is usually a precursor to an OTC-related auction.”
“We’re watching to see if this has any real impact on price and supply.”
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriol Investments, struck a pessimistic tone, saying that repetitive patterns in national distribution are hindering the upward trend in BTC prices.
“Just when we thought all the oversupply dumping was over, the current administration finds another way to fool us,” part of X’s response said.
Skew’s analysis of recent market movements has revealed that there has been massive profit taking at highs across the order book.
“Such a push by spot buyers was met with passive spot selling, and so the price never managed to hold above $70,000 on LTF,” another X post reads.
The area above $69,000 represents a psychologically important price range for Bitcoin, which initially appeared at an all-time high in 2021. It has since provided significant order book liquidity.
According to the latest data from monitoring resource CoinGlass, liquidity on the day was flat, with prices instead dropping, leading to lower liquidity.
Skew has identified that further downside is possible due to the inability of the bulls to support the market at current levels.
Lower Highs Raise Long-Term BTC Price Concerns
One of the most conservative reactions came from popular trader Josh Razer, who warned that lower highs could follow.
Related: US National Debt Tops $35 Trillion — 5 Things to Know About Bitcoin This Week
“Will there be a lot of price action in the orange box leading up to the FOMC on Wednesday? Yes, so far it looks like it,” popular trader CrypNuevo continued, referring to the upcoming Federal Reserve rate meeting.
“When there’s a big event like this FOMC, the markets tend to be shaky until the news comes out. The big players are cautious. It’s not an easy week.”
CrypNuevo has reuploaded an existing chart showing the potential BTC price trajectory following the Federal Reserve’s decision, which is set to be announced on July 31.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.