Bitcoin (BTC) price dropped by 4 percent over the past 24 hours to trade around $58,413 on Thursday, during the early Asian session. Therefore, the flagship coin is currently retesting the support level around $58k after it was repeatedly rejected at the resistance range between $61k and $62k.
Following the recent daily death cross between the 50 and 200 Moving Averages (MAs), fears of further Bitcoin capitulation have increased significantly.
As Bitcoin’s price fell to $58,000 earlier today, Bitcoin’s fear and greed index dropped to 29 percent, indicating increased fears of further capitulation.
Moreover, since March this year, the price of Bitcoin against the US dollar has been showing both lower lows and lower highs, which is characteristic of a downtrend.
Bitcoin Whales on the Move
Amid increased Bitcoin price volatility, on-chain data shows that whales and sharks have dramatically increased their activity. For example, a US-affiliated wallet deposited 10,000 Bitcoins, worth nearly $600 million, to Coinbase Prime in the past 24 hours. In total, the US government has deposited approximately 16,000 Bitcoins to Coinbase in 2024.
Currently, the US government holds approximately 203k Bitcoins, worth around $11.9 billion. The recent influx follows presidential candidate Donald Trump’s pledge that the US government will no longer sell the coins if he is elected later this year.
Meanwhile, BlackRock’s IBIT recorded net cash inflows of over $33 million on Wednesday, despite notable cash outflows from Grayscale’s GBTC and Fidelity’s FBTC. It’s worth noting that Morgan Stanley announced a $187 million purchase of BlackRock’s IBIT.
Earlier today, Bitcoin miner Marathon Digital announced that it had completed the sale of $300 million in long-term convertible senior notes to purchase more BTC. The announcement follows the revelation that the Norwegian and Swiss central banks have already purchased more than 1.5 million MicroStrategy shares combined in the recent past.
What now?
Bitcoin price is expected to benefit significantly from the upcoming US elections and possible interest rate cuts next month. Notably, Wednesday’s CPI data suggested that US inflation is slowing, pointing to possible interest rate cuts soon.
From a technical standpoint, Bitcoin price could be on the verge of a major bullish breakout to its all-time high or a significant crash towards $40k. However, if Bitcoin price closely follows that of Toncoin (TON), a potential rebound will push the flagship coin towards $64k soon.
