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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

Why Bitcoin Won’t Crack Over Fresh Bear Assault, Next Potential Target For BTC

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 7:33 am
2 mins read
Picture of gold bitcoin on top a circuit board

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Bitcoin continues to trade to the downside after it was rejected at around $45,000 last week. The crypto market, in general, has been following a downtrend with Ethereum (ETH), Binance Coin (BNB), XRP, Cardano (ADA), and others recoding over 10% losses in the past 7-days.

Related Reading | Bitcoin Prices Bear The Brunt Of Long Liquidations And Geopolitical Tensions

At the time of writing, Bitcoin trades at $37,638 with a 12% loss over that period.

Bitcoin BTC BTCUSD
BTC trends to the downside on the daily chart. Source: BTCUSD Tradingview

The benchmark crypto seems to be negatively reacting to the latest developments between Russia and Ukraine. Yesterday, the president of the Russian Federation Vladimir Putin acknowledged the independence of two Ukrainian regions ruled by leaders with separatist tendencies.

This has heated up the situation with Russian sending in troops to “guarantee the security” of those territories. According to Yuya Hasegawa from crypto exchange BitBank, BTC’s price trends lower alongside the wider financial market.

Investors seem to be entering a period of risk-aversion which directly affects cryptocurrencies, considering some of the riskier assets. The situation might see some relief during the week as representatives from Russia and the U.S. could reach a diplomatic agreement, but that possibility seems to be fading. Hasegawa said:

(…) with the gas pipeline explosion in eastern Ukraine last Friday, increased Russian military presence at the border, heavier financial sanction on Russia, and the U.S. PCE announcement coming up this Friday, there seems to be only little reason to take on any risks right now.

The analyst has set a Bitcoin price between $32,000 to $43,000 in the coming days. Data from Material Indicators show a lot of resistance for BTC’s price around $40,000.

As seen below there is as much as $20 million in asks orders which could prevent the bulls from retaking these levels in the short term. On the downside, $36,000 could operate as good support with $5 million in bids orders sitting around that price mark.

Bitcoin BTC BTCUSD
BTC price (blue line in the chart) with potential resistance above (yellow and red, asks orders, above price). Source: Material Indicators

Will The Price Of Bitcoin Hold Off The Bears?

QCP Capital has been recording “aggressive volume-selling” any time Bitcoin attempts to make a run to the upside. The firm coincides with the relevance of the Ukraine-Russia situation for global markets and the apparent imminent hike in interest rates from the U.S. FED.

However, QCP Capital remains optimistic based on the drop in leverage long positions with BTC’s price current price action. These positions have been cleansed out of the market without impacting funding rates on BTC futures.

Related Reading | Tether & The Swiss City Of Lugano Promise “Europe’s BTC Capital.” Is It, Though?

In addition, the firm believes any future interest rate hike by the U.S. FED has already been priced in by market participants. QCP Capital said the following on BTC’s price potential fate for the short-term:

We think it will be more of a grind lower with the possibility of short-squeezes on positive headlines. These spikes in spot price would probably be met with aggressive spot selling, capping the topside.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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