Why is Bitcoin price down today

Why is Bitcoin price down today

Why is Bitcoin price down today

A minor reduction in the amount of Bitcoin held by its wealthiest whales and better-than-expected job data from the US are two of the main factors causing the cryptocurrency's current price declines.

Rising bond yields hurt traders' appetite for Bitcoin

The main cause of today's drop in the price of bitcoin was the positive May employment report from the United States. In the last month, nonfarm payrolls increased by 272,000, exceeding every one of the 77 projections in Bloomberg's expert survey. The news caused Treasury yields to soar, with the two-year and 10-year yields jumping by about 12 basis points. Stocks fell, with the S&P 500 Index, the benchmark, falling by about 0.3%. The dollar gained strength in the interim. Increasing yields can be a sign of increased borrowing costs and a decrease in willingness for risk. Because of this, investors typically gravitate towards safer investments and away from risky ones like stocks and cryptocurrency.

Richest Bitcoin whales cashing out?

The price reduction of Bitcoin today is accompanied by a minor decrease in the amount of BTC owned by its wealthiest holders. Significantly, during the past 48 hours, the amount of Bitcoin held by "whales" with at least 100,000 BTC (black) in their holdings has decreased by 0.2%. Stated differently, these investors are either cashing out completely or transferring their holdings into smaller addresses. However, smaller batches of Bitcoin, including those with 10,000–100,000 BTC and 1,000–10,000 BTC, have been building up recently.

Bitcoin is unable to break past $70K

From a technical perspective, the current slide in Bitcoin began when it tested its temporary resistance level, which is located at $70,000. Since the middle of March, the cryptocurrency has been unable to close clearly above the mentioned level.  But this resistance level seems to be the neckline of the current inverse head and shoulders (IH&S) pattern for Bitcoin. When the price breaks above the neckline and rises by as much as the maximum distance between the pattern's lowest point and the neckline, the traditional bullish reversal setup is resolved. If the IH&S pattern materializes as predicted, above $90,000 is the main upside goal for bitcoin in July. On the other hand, a retreat from the neckline might push the price of bitcoin toward its 50-day exponential moving average, or the red wave, which is located at roughly $66,740.