Bitcoin fell to $105,000, influenced by declines in tech stocks and the impact of the legislation.
After setting the highest monthly closing price in history, Bitcoin experienced a pullback in the past 24 hours, dropping to a low of around $105,100.
Foreign media (CoinDesk) pointed out that the recent decline of Bitcoin is mainly influenced by investors taking profits, the weak performance of U.S. tech stocks, and the passage of the controversial 'Big and Beautiful Act' by Trump and Musk in the Senate.
Yesterday, U.S. stocks opened with significant declines in Tesla (TSLA) and Nvidia (NVDA), leading to a drop of about 0.6% in the Nasdaq index. The downturn in tech stocks usually negatively affects cryptocurrencies.
Other major altcoins such as Solana ($SOL), Cardano ($ADA), and Avalanche ($AVAX) have also seen significant declines, with $SOL dropping nearly 6% on the day.
Further Reading:
Musk harshly criticizes Trump's Big and Beautiful Act: Congress is bankrupting America, and the supporting lawmakers are shameful!
Bitfinex: Bitcoin's momentum is weakening, and a surge is unlikely in the short term.
Analysts from the cryptocurrency exchange Bitfinex noted in yesterday's (7/1) market report that Bitcoin's upward momentum over the past three months may be losing steam, as buying pressure weakens and more traders begin to take profits.
Since Bitcoin fell to its annual low of $73,273 on April 9, it has rebounded nearly 41% to $107,380.
However, Bitfinex analysts warned that Bitcoin's order book data and on-chain indicators show that Bitcoin may be entering a consolidation phase or reaching a temporary peak, rather than experiencing a continuous 'vertical acceleration rise'.
Bitfinex analysts stated:
"Bitcoin's spot trading volume has cooled down, buying pressure has weakened, and profit-taking has increased, especially among short-term holders who entered below $80,000, with selling pressure being more severe."
Bitfinex analysts believe that Bitcoin's next movement will depend on macroeconomic factors and ongoing institutional demand, especially the inflow of funds into Bitcoin spot ETFs.
Data from Farside Investors shows that since June 9, the U.S. Bitcoin spot ETF has recorded inflows for 14 consecutive trading days, with a cumulative net inflow of $4.63 billion as of June 27.
Two major short-term support levels are at $104,500 and $100,000.
(Cointelegraph) Senior analyst Rakesh Upadhyay stated that Bitcoin has not been able to break through the resistance level of $109,000, and if the price falls below and remains below the moving average, it may decline to $104,500. If it falls below $104,500, it may test the psychological support level of $100,000.
However, Upadhyay also mentioned that if Bitcoin can rebound from the moving average and break through the downward trend line, it may drive Bitcoin to challenge the historical high of $111,980.
If it can break through the 20-day EMA (currently around $106,000), it will be the first strong signal, paving the way for a challenge to the downward trend line.
This content was generated by Crypto Agent aggregating information from various sources and reviewed by 'Crypto City'; it is still in the training phase and may contain logical biases or informational errors. The content is for reference only and should not be considered investment advice.
'Bitcoin dips to $105,000! Bitfinex: A major surge is unlikely in the short term, where are the key support levels?' This article was first published in 'Crypto City'.
