- Bitcoin fell over 16% in the past 24 hours, dropping below $50,000 and reaching its lowest unrealized profit margins since November 2022.
- Large Bitcoin holders withdrew over 84,000 BTC from exchanges in July, marking the highest monthly outflow in nearly a decade, comparable to 2015.
- Analyst warns that Bitcoin could drop to $40,000 if support levels between $50,000 and $53,000 fail.
Bitcoin witnessed a steep fall, and its effects were felt across the whole cryptocurrency market. In the last 24 hours, BTC slipped more than 16% to break below the key $50,000-level area. This tugging downward pulled traders into a difficult position, with unrealized profit margins of traders falling to the lowest since November 2022.
According to recent data from Glassnode, large BTC holders have been on a massive withdrawal spree, removing more than 84,000 BTC from centralized exchanges this July. The unprecedented outflow has resulted in the largest monthly withdrawal recorded in almost a decade. The only instance comparable to this occurred in 2015 when the price of Bitcoin was hovering around $220.
As of now, Bitcoin is trading at $52,636, bouncing from its recent low, with a 24-hour volume across exchanges amounting to $179.16 billion. The market capitalization currently stands at $1.04 trillion; dominance stands at 55.63%. It fell 13.22% just in the past day.
Analyst Warns of $40k Threat if Bitcoin Support Fails
In a recent update, popular cryptocurrency analyst Crypto Patel highlighted a key development in the Bitcoin market. According to Patel, the price action of the major cryptocurrency recently acted out exactly as expected at the end, resulting in a notable decline.”.
Patel, an astute market analyst, pointed out that this drop was something expected and may have opened opportunities for those holding short positions. For traders who bet against Bitcoin’s price movement, this downturn could have been profitable.
Patel highlighted needing to watch out for specific support levels in the BTC market. He picked out a range from $50,000 to $53,000 as a key support area. It would turn out to be a resilient swath that could put brakes on further declines. If BTC slides below this support range, Patel said it could soon test $40,000
In view of recent market movements, Patel advised traders to be cautious. He recommended avoiding high leverage to protect your investments. With market volatility, protecting your capital from that is vital, and using high leverage can be very risky.
While Bitcoin is running over these very important support levels, this should count as important: staying informed and cautious. Ensure your trading strategies are in line with the current market, and at every point, ensure you secure your investments.
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