Bitcoin has been struggling to reclaim the $70,000 level for over a month. Despite multiple resistance battles, it managed to touch this mark on July 29 but couldn’t hold it, dropping to $66,500 after a 4% rejection and breaking several support levels and moving averages.
Let’s explore the reasons behind this sudden decline and what to expect next.
Multiple Support Factors
Several factors helped Bitcoin break all resistance levels and reach $70,000. The biggest was former U.S. President Donald Trump’s speech at the 2024 Bitcoin Conference in Nashville.
Trump expressed his support for Bitcoin and the crypto ecosystem. He promised that if elected, he wouldn’t sell the U.S. government’s seized Bitcoin but instead transform it into a strategic reserve.
Trump has repeatedly stated his willingness to make the U.S. the biggest player in Bitcoin, hoping for the crypto ecosystem to thrive in America.
Biggest Resistance
The $70,000 area is one of the biggest resistance levels as it is Bitcoin’s old high. According to experts, this level poses the greatest challenge for BTC, with significant sell pressure liquidity preventing it from holding its position.
The MA 20 tried to keep the price around $69,000, but the intense selling pressure broke this level, even surpassing the next support at $68,000. This caused panic among traders, leading to further price decline.
U.S. Government BTC Movement
Amid Bitcoin’s drop due to high selling pressure, the U.S. government made some adjustments to its Bitcoin holdings. Data from Arkham showed that they moved 29.8 thousand BTC (worth $2.02 billion) out of their total 183,439 BTC to an unknown address.
This sparked new market fears, with tweets suggesting the government might sell these BTC, causing panic and a drop to $66,500.
What’s Next ?
As of now, the owner of the wallet that received the $2.02 billion in Bitcoin from the U.S. government remains unknown, making it nearly impossible to predict their next move. Whether it’s another government wallet planning to use this Bitcoin or simply a maneuver remains uncertain.
However, more information is expected to emerge soon. With bearish forces weakening, Bitcoin is now trying to stabilize its price. We can only hope that as global support for cryptocurrency grows, the price will rise again soon.
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