- The latest market decline was not due to Mount Gox, but to market sentiment following the ETF’s approval.
- Traders are using excessive leverage to buy the dip, with a liquidation pool of $30 million if BTC falls below the $63,800 level.
During Asian trading hours on July 25, the overall cryptocurrency market saw a significant drop, with Bitcoin leading the way [BTC] dropped below the $64,000 mark.
Crypto traders appear to be buying the BTC dip
Amid this market selling pressure, one crypto analyst made a after on X (formerly Twitter) stating that swordsmen are using heavy leverage to buy Bitcoin dip.
According to the post on This means that if the BTC price falls below the $63,800 level, this $30 million pool will be liquidated.
In addition to these traders, BTC whales also seem to be interested in buying the dip. Recently, an on-chain analytics company Lookonchain posted on X that a smart whale had purchased 244 BTC worth $16 million.
Furthermore, this whale added a total of 921 BTC worth $60.6 million at an average price of $65,821.
These reports from the analyst and on-chain analytics firm indicate that investors and traders are showing confidence in BTC despite its decline of more than 3.4% in the past 24 hours.
Analysts on the recent market decline
Looking at this continued selling pressure, Ki Young Ju the CEO and founder of CryptoQuant posted a message on X stating that after the refunds from Mt. Gox creditors in all global time zones have passed, the spot Bitcoin trading volume and currency flows of the crypto exchange Krakens are normal.
Moreover, Young Ju added that any price drop in the market would happen because of market sentiment, and not because of Mount Gox.
This message from the CEO highlights that the recent market decline is likely due to market sentiment and the continued sell-off of BTC and Ethereum (ETH) by whales and institutions following the approval of spot Ethereum ETF.
Technical analysis of Bitcoin and upcoming levels
Another one on the other side crypto analyst posted a post sharing the insight that there is potential for a BTC recovery as the technical indicator shows a buy signal on the BTC hourly chart.
According to expert technical analysis, BTC still looks bullish, with a support level at $63,350, and continues to rise above the 200 Exponential Moving Average (EMA) within a 4-hour time frame.
The BTC price above the 200 EMA indicates bullishness on the chart.
Source: TradingView
Moreover, another technical indicator, the Relative Strength Index (RSI), is oversold, also pointing to a possible price recovery.
As for the price action, if market sentiment remains the same and BTC fails to hold above the 200 EMA and the $63,350 level, we could see a massive sell-off with BTC price falling to the $60,300 level.
Read Bitcoin’s [BTC] Price forecast 2024-25
After the $63,350 level, the $60,300 level is the next support that BTC may encounter if it does not hold this time.
At the time of writing, BTC is trading near the $64,200 level and has experienced a 3.4% price drop over the past 24 hours. It also hit an intraday low at $63,770. Furthermore, trading volume has increased by 10%, indicating greater participation from investors and traders.