Crypto market watch: Bitcoin (BTC) price briefly dips below $60,000

Bitcoin's value briefly dipped below $60,000 before stabilising above it. BTC witnessed a drop of over 4.50 per cent. The cryptocurrency had reached a peak of $70,000 in the first week of June but has been steadily declining since then. The drop began on June 22, with the price hitting a low of $58,580. Bitcoin has since regained some value, currently settling around $60,500.

Edul Patel, CEO of Mudrex said, "Bitcoin's price fell to $59,000, the lowest point in six weeks. There are several reasons for this decline. The German government, which transferred nearly 6,500 BTC, as reported by Arkham Intelligence on June 19, pulled BTC down. Yesterday, Mt. Gox announced it would return $8.5 billion worth of BTC to clients affected by the 2014 hack. Since Bitcoin’s price has risen more than 8,000% since 2014, this could introduce a certain amount of selling pressure for BTC.

He further added, "The decline in BTC's price also coincides with outflows from spot Bitcoin ETFs. However, BTC has since recovered and is trading above the $61,000 level. The next immediate resistance lies at the $61,400 level and the support is at the $60,800 level. Investors and traders should monitor the market closely for developments."

CoinSwitch Markets Desk claimed that it was an unusual day in crypto ecosystem. Bitcoin (BTC) plummeted by over 8 per cent at one point, altcoins showed resilience, maintaining their positions as BTC dominance decreased by nearly 1 per cent.

They added, "Despite being in a bearish trend for the past 18 days, BTC appears to have found support at $58.5k USD. Before the daily closing candle, it managed a slight rebound above $60k USD. Bitcoin has gone below 60k USD mark only once after February end this year." Some analysts predict that the actual Bitcoin sales could be less significant than the market currently anticipates.

The CoinDCX Research Team claims that currently, the market appears stable with open interest flushed and funding rates reset, even turning negative. Technical indicators remain strong on higher time frames. Newly released tokens continue to perform better than older coins.

Rajagopal Menon, VP, WazirX says that Bitcoin's price has corrected significantly after failing to consolidate above $70,000, retesting its March ATH of $73,700.  He said, "With a 6.5 per cent retracement in the past week, BTC is now trading just above $60,000 support. The rapid decline pushed the Relative Strength Index (RSI) into 'oversold' territory, historically preceding rebounds, which some analysts see as potential buying opportunities."

Menon added, "Despite significant losses, Solana is trading at $134, a 5.5% increase. Trading volume remains robust, exceeding $2.8 billion in the past 24 hours. Solana alone saw inflows of over $2.7 million, suggesting investors see potential value in SOL despite recent price declines."