Bitcoin Faces Persistent Decline Amid Market Uncertainty

Bitcoin Faces Continued Weakness Amid Government Sell-Offs and Bearish Sentiment
Bitcoin has been struggling in recent trading days, with a bearish sentiment prevailing since a significant drop on June 24. The sell-off momentum is likely to continue, erasing gains from the last two days. Contributing to the downward pressure, the U.S. government recently sold 4,000 BTC, following a massive BTC sale by the German government earlier in the week.
Despite this, one analyst remains optimistic, citing a formation in the RSI indicator that suggests a potential strong price recovery. Bitcoin is currently in oversold territory, reminiscent of a similar situation in 2023 when prices rebounded from below $30,000 to reach an all-time high above $50,000 by March 2024.
Bitcoin’s price trend has been bearish in the short term. After peaking at $73,800 in March 2024, prices dropped sharply to $56,500 by May 2024, and though there was some recovery, the path of least resistance remains downward. Bitcoin is testing its lower boundary for the fifth time since March, and a breakdown below the $56,500 to $60,000 zone could see prices fall to $50,000-$52,000.
Another analyst highlights the importance of the bull market support band, which has historically been a reliable support zone. Positive precedent from January 2024 suggests a potential bounce from current levels.
Interest in spot Bitcoin ETFs is rising despite recent price declines and outflows. On June 26, $21.5 million flowed into these products, with Fidelity and Grayscale seeing notable inflows. This interest could provide a glimmer of hope for Bitcoin’s price recovery.
Feature image from DALLE, chart from TradingView