Bitcoin ' s current transaction price is about $62,500, a decline of about 2.2 to 2.4 per cent over the past 24 hours. The decline was slightly higher than the 2 per cent decline in the overall encryption market.
Tensions between the United States and Iran over the weekend led to a sharp rise in oil prices and a rise of more than 3 per cent in Brent crude oil. The rise in oil prices has raised concerns about a resurgence of inflation, and may force central banks to maintain higher interest rates, an environment that usually puts pressure on non-payment assets (e.g., bitcoin) and leads traders to sell bitcoin and other risky assets.
Leverage has exacerbated the decline.
Once the sale began, the situation rapidly deteriorated. According to derivative data, approximately $6,745 million of Bitcoin ' s multiple positions were forced to settle within one day, most of which came from traders who were betting on price increases. When the leverage position is forced to level, the decline is exacerbated by additional sales pressure on the original decline.
What's next?
Bitcoin is currently testing an important level of technology. The key level of support in the vicinity of USD 61,376 is the graphic tool used by traders to identify possible turning points, based on the Fibonacci retreat. If Bitcoin can remain above that level, it may enter a relatively smooth trans-blank trade area. If that level is broken, it could slide to $60,000.
The next major catalyst will arrive on Tuesday, and the July consumer price index report will be published in the United States. Lower-than-anticipated inflation data may ease the pressure on Bitcoin and help stabilize it; higher-than-anticipated data may drive it down the support level.
Despite these reversals, the inflow of spot bitcoin ETF has recently turned positive, indicating that there are institutional requirements even if the short-term mood is in a state of panic.