Bitcoin Price Breaks Below $64k After Ethereum ETF Hype: Here’s Why

Bitcoin Price Analysis

Bitcoin (BTC) price tumbled below the $64,000 mark on July 25, down 7% from the weekly timeframe peak of $68,477, on-chain analysis explores how traders selling the news may have triggered the on-going price pull-back, and the bulls could mount support buy-walls in the days ahead.

Bitcoin Price Fell Below the $64k as Ethereum ETF Hype Cools

Bitcoin price, along within the rest of the crypto market had been on a blistering uptrend over the last 10-days dating back to July 5. This rally mainly driven by a broad range fresh macro developments within the US economy.

First, the dovish NFP and CPI reports for June 2023 sparked increased demand across all risk assets markets including the crypto sector.

Rhe rally entered second gear on Monday July 22, as markets reacted to the Ethereum ETFs launch  and US President Biden pulling out of the race for re-election, which put Crypto-friendly Donald Trump in the driving seat for the 2024 elections holding in December.

With these multiple bullish catalysts Bitcoin price raced into a 28% rally in 17 days, moving from $53,540 on July 5, to hit $68,477 on July 22.

Notably, the $68,477 price level is Bitcoin’s highest in over 30-days dating back to June 10, 2024. Unsurprisingly, bull traders in the derivatives mounted LONG positions worth over $1 billion, in anticipation of a $70,000 breakout.

However, market events unfolding in the last 48 hours suggests the $70,000 target is now unlikely within the monthly timeframe. Look at the chart above we see that BTC price has now retraced 7% from the $68,477 peak recorded on July 22, as it tumbled as low as $63,802 on Thursday July 25.

Firstly, there is an indication that a lot of strategic crypto traders that bought BTC in the build up to the Ethereum ETF launch are now promptly “selling-the-news” to locking some of the unrealized profits they have racked up during last few weeks.

Bitcoin Price Forecast: Bulls Must Reclaim $66k Resistance

Bitcoin’s price has rebounded to $64,150 as of July 25, after dipping to a low of $63,802 within the daily timeframe. However, to avoid a prolonged bearish trend, BTC needs to push beyond the key resistance level at $66,000.

The chart below reveals that BTC had previously surged by 28% over 17 days, reaching a peak at $67,098 before experiencing a 6.8% pullback.

The Parabolic SAR indicator currently suggests a bearish sentiment as it hovers above the price. Additionally, the Balance of Power (BoP) indicator shows a negative value, indicating that sellers have the upper hand in the market.

If Bitcoin manages to reclaim the $66,000 level, it could signal the continuation of its upward momentum.

Conversely, failure to hold above $64,000 could see it retesting the support level at $63,554, with a potential further drop towards $60,000 if bearish pressure intensifies. Traders should monitor these key levels closely to gauge the next move in BTC’s price action.