Bitcoin (BTC) price fell by 4 percent over the past 24 hours to trade at around $58,413 during the early Asian session on Thursday. Therefore, the flagship coin is currently retesting the support level at around $58,000 after facing multiple rejections in the resistance zone between $61,000 and $62,000.
Following the recent daily death cross between the 50 and 200 moving averages (MAs), fears of further Bitcoin capitulation have increased significantly.
As Bitcoin price slid to $58,000 earlier today, Bitcoin’s fear and greed index dropped to 29 percent, indicating increased fear of further capitulation.
Moreover, Bitcoin price against the US dollar has been forming lower lows and lower highs since March this year, a characteristic of a downtrend.
Bitcoin whales on the rise
Amid the increased volatility in Bitcoin price, on-chain data shows that whales and sharks have drastically increased their activity. For example, a US-linked wallet deposited 10,000 bitcoins worth nearly $600 million to Coinbase Prime in the last 24 hours. In total, the US government has deposited around 16,000 bitcoins to Coinbase in 2024.
Currently, the U.S. government holds around 203,000 bitcoins, worth about $11.9 billion. The latest deposit followed presidential candidate Donald Trump’s promise that the U.S. government would not sell any more coins if he is elected later this year.
Meanwhile, BlackRock’s IBIT reported net cash flow of over $33 million on Wednesday, despite notable cash outflows from Grayscale’s GBTC and Fidelity’s FBTC. Notably, Morgan Stanley announced a $187 million purchase of BlackRock’s IBIT.
Today, Bitcoin miner Marathon Digital announced that it has completed the sale of $300 million worth of long-term convertible bonds to buy more BTC. The announcement follows the disclosure that the Norwegian and Swiss central banks have already bought more than 1.5 million MicroStrategy shares together in the recent past.
What happens next?
Bitcoin price is likely to benefit significantly from the upcoming US elections and a possible interest rate cut next month. In particular, Wednesday’s CPI data suggested that US inflation is easing, suggesting possible rate cuts soon.
From a technical perspective, Bitcoin price could be on the verge of a major uptrend to its all-time high or a significant crash to $40,000. However, if Bitcoin price closely follows that of Toncoin (TON), a potential recovery will soon push the flagship coin to $64,000.
