Crypto trader Alex Kuptsikevich said that a drop below the $60,000 mark of Bitcoin BTC/USD could trigger a panic sell-off.
What Happened: Kuptsikevich noted that the price action has been marked by a series of lower lows and lower highs, indicating investors selling into strength on price rallies, CoinDesk reported on Monday.
He stated, “There is pressure likely related to asset sell-offs by miners and fears of tighter regulation of cryptocurrencies.”
Kuptsikevich also suggested that a positive scenario would be a price rise above $65,000, which would confirm the price at the 50-day moving average and the reversal area in early May.
Earlier this week, BTC briefly surpassed $63,000, stimulating a rise in both alternative and major tokens. Ethereum ETH/USD, Solana’s SOL/USD, and Dogecoin DOGE/USD all experienced a 3% increase within 24 hours, primarily following BTC’s ascent. TON, the token of the Tonchain blockchain linked to the messaging service Telegram, led the rise among major tokens with a 7% jump.
Since March, BTC has been largely oscillating between $60,000 and $70,000. The highly anticipated halving event in April turned out to be a sell-the-news play due to a general lack of market catalysts. In recent weeks, inflows from exchange-traded funds (ETFs) have decreased, contributing to a bearish sentiment.
Why It Matters: Underlying factors such as falling consumer sentiment, missing economist forecasts, and a looming $2 billion of token unlocks over the next ten weeks have put pressure on the cryptocurrency markets.
Leading cryptocurrencies remained range-bound over the weekend, with bears continuing to provide tough resistance to the market's drive for sustained gains. Bitcoin, the largest cryptocurrency by market cap, meandered in the $61,000 zone, after witnessing a sharp correction from $63,000 last Friday.
Price Action: On Monday, Bitcoin was trading 1.87% higher at $62,735.32 at the time of writing, according to Benzinga Pro.
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