Bitcoin News
Why Bitcoin Price is Having Trouble Reaching $64K Again: 3 Factors at Play
Jun
3 Reasons Behind Bitcoin’s Struggle to Reclaim $64K
Bitcoin’s turbulent week continues as data indicates further downside in BTC price.
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Market Update
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Bitcoin (BTC) dropped below $64,000 for the first time in over a month on June 21. Data from Cointelegraph Markets Pro and TradingView shows that BTC dropped from an opening at $64,840 to an intra-day low of $63,451.
The last time Bitcoin’s price traded below $64,000 was on May 15, when it rose from a low of $61,299 to set a swing high at $71,980 on May 21, fueled by excitement about a spot Ether (ETH) exchange-traded fund (ETF) approval.
At the time of publication, the largest cryptocurrency by market capitalization was trading at $63,552, down 3.54% over the last 24 hours.
The broader crypto market capitalization is also down 3.24% over the same period to rest at $2.33 trillion, while Ether (ETH) was down 2.25% to $3,475.
Let’s look at some of the reasons why Bitcoin leads the market in a correction.
Bleeding Spot Bitcoin ETFs Weigh on BTC Price
Investors’ risk-off sentiment is evident across the spot Bitcoin ETFs, where investors have been withdrawing their capital for days.
On June 19, spot Bitcoin ETFs in the U.S. recorded outflows for the fifth consecutive day, bringing the total withdrawals for the week to $900 million. This is the highest outflow activity since late April.
Grayscale’s GBTC led with $53.1 million outflows, followed by Fidelity’s FBTC at $51.1 million. VanEck’s ETF reported $4 million in net outflows.
Falling Network Activity Backs Bitcoin’s Downside
Another reason why Bitcoin’s price continues to scale downward could be reduced demand due to declining network activity.
Popular analyst Ali Martinez also observed the reduced activity on the Bitcoin blockchain.
Bitcoin’s Price Loses Key Support Levels
From a technical perspective, Bitcoin’s price decline today is part of a broader correction that started after it was rejected from the $72,000 resistance level on June 7.
At the time of publication, BTC’s price was breaching the support provided by the 200-day EMA, signaling the activation of the continuation of the sell-off.
On the downside, the key levels to watch at $60,000 and the $56,500 swing low.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.