Bitcoin plunged below $64,000. What caused the decline? Will BTC price fall below $60,000?

In an interesting curve, the price of Bitcoin declined significantly, falling below $64,000 and hitting a low below $63,000. This has left the cryptocurrency public in deep pain, which is expected to deepen in the coming days. Taking previous price action into account, the BTC price does the same thing. So, there is no need to be bearish on Bitcoin at the moment as the real bull market has not started yet.

The BTC price typically surges 4-5 weeks before the halving and peaks, followed by a period of consolidation. This is the moment of awakening for altcoins that were witnessed before the halvings in 2016 and 2020. However, a bearish signal was signaled in the BTC price as OBV or on-balance volume broke the rising support line. This indicates that the token may soon break the lower support level and surge lower.

OBV is a technical indicator that predicts price movements based on volume flows. Currently, OBV is breaking from the uptrend line, indicating that the distribution may be starting. This indicates negative volume flow, which can be considered a warning of a bearish breakout. Therefore, the impact is visible as the BTC price has made a daily low below $63,000, which is around $62,800.

Second, the FOMC is expected to announce new interest rates, which are expected to remain unchanged. With the U.S. presidential election scheduled for September, it is unlikely that the government will force an interest rate cut. On the other hand, the impact of spot ETFs appears to have decreased. This is because while Grayscale’s net inflows have declined sharply over the past few days, its outflows have reached their highest figure of over $640 million.

These could be some of the reasons for Bitcoin selling, but the actual low of sustained selling pressure could be well ahead of current levels.