Bitcoin, Ethereum, Dogecoin Extend Losses As Market Remains Pessimistic
Leading cryptocurrencies experienced further declines on Monday, as pessimistic projections on interest rate cuts continued to impact the market. Analysts provide mixed forecasts, including a potential significant rise in Bitcoin's price by October.
Cryptocurrency Gains/Losses
Price Data (Recorded 8:30 p.m. EDT):
- Bitcoin (BTC/USD): -1.25% $65,701.78
- Ethereum (ETH/USD): -4.01% $3,470.89
- Dogecoin (DOGE/USD): -7.42% $0.127
What Happened
Bitcoin fell to the $65,000 zone, wiping out its gains from the earlier advance to $71,000. Ethereum experienced a harsher decline, with the date for its spot ETF approvals moved up to July 2. This shift led to liquidations worth $348 million in the last 24 hours, affecting over 152,040 traders. Long liquidations alone totaled $300 million.
Market Impact
This decline negatively affected the speculative market, causing Bitcoin's Open Interest (OI) to drop by 2.68% in the last day. Both the decline in price and OI suggest a downward trend. An increase in traders taking short positions compared to those taking bullish positions further confirms this trend.
Top Gainers (24-Hours)
Price Data (Recorded at 9:00 p.m. EST):
- aelf (ELF): +20.46% $0.4717
- cat in a dogs world (WLD): +9.79% $0.004713
- XRP (XRP): +2.58% $0.5021
Cryptocurrency Market Cap
The global cryptocurrency market cap stands at $2.38 trillion, a drop of 2.60% in the last 24 hours.
Analyst Notes
Timothy Peterson, a well-known Bitcoin analyst, shared his insights on Bitcoin's expected price movement over the next three months. According to his analysis, there is a 90% chance Bitcoin will drop by about 10-20% in the next 90 days, but there's also a two-thirds chance it will gain +50% by the end of this period. He predicts Bitcoin could fall to $52,000 before bouncing back to $98,000 by October.
Another prominent trader, Moustache, observed that Bitcoin is forming an inverse head and shoulders pattern. According to him, the low of the right shoulder should align with the bottom of the left shoulder. He believes that after reaching this pattern, we shouldn't see prices below $70,000 for a long time, suggesting it could be an opportune moment to invest.
Conclusion
While the current market remains pessimistic, with significant declines in top cryptocurrencies like Bitcoin, Ethereum, and Dogecoin, the future may still hold potential for strong recoveries. Both analysts emphasize that understanding market patterns and timing could be crucial for future gains.
