Bitcoin has seen its price drop after a resistance test and could continue lower.
The price of BTC has hit resistance at the $64,000 level and has slumped back below the $60,000 level. The following support could be at the $54,000 level.
The world’s largest cryptocurrency plunged around 6% in a few minutes, more than erasing the gains seen late last week after a dovish tone from Federal Reserve Chair Jerome Powell. BTC was also boosted by the combination of presidential candidates Donald Trump and RFK Jr, who are seen as crypto-friendly.
After touching a low near $58,200, bitcoin was able to mount a bounce back above $60,000 but has since fallen again.
Behind the recent divergence with Ethereum, the crypto market has been a tale of two very different spots ETF launches this year. Bitcoin funds have pulled in more than $10 billion in net inflows. In contrast, ether vehicles have lost assets on a net basis since their introduction.
Bitcoin has also dropped due to risk-off sentiment after Nvidia earnings failed to impress investors despite hinting at better-than-expected third-quarter earnings coming later in the year.
The market cap of Bitcoin has moved lower to $1.17 trillion, while the global crypto market cap is around $2.05 trillion.