Bitcoin Drops Below $61k as Market Consolidation Persists

TL;DR

• Bitcoin is trading below $61k after losing 2% of its value in the last 24 hours.

• Market experts believe that BTC is still consolidating and could soar higher soon.

BTC Dips to $60k as Bears Regain Control

The bears are back in control despite Bitcoin’s positive start to the week. The leading cryptocurrency by market cap is down 2% in the last 24 hours and now trades below $61k per coin.

At press time, Bitcoin’s price is $60,929 and could dip further if the bearish momentum persists. The bearish performance comes as analysts believe Bitcoin is still consolidating.

In an email to Cryptowisser, Ruslan Lienkha, chief of markets, YouHodler, pointed out that the market’s long-term outlook remains bullish. He said,

“Bitcoin prices remain in a consolidation and corrective phase following the strong growth seen earlier this year. From a technical analysis perspective, the weekly chart remains optimistic, showing a bullish flag pattern, often indicating an upward trend's potential continuation. Fundamentally, the outlook also appears favorable for further growth through year-end, as the recent interest rate cut has provided a risk-on signal for traders.”

Despite the bullish momentum, Lienkha believes that the primary risk to the crypto market stems from macroeconomic factors and the potential for a US recession. 

With the U.S. elections on the horizon, market experts believe a win for Trump will benefit the crypto market, at least in the short term. Lienkha added that,

“If Trump wins the election, it could ignite a wave of short-term optimism in the crypto market, potentially driving up token prices. Trump's generally perceived crypto-friendly stance could usher in positive long-term effects for the industry. On the other hand, a Democratic administration is expected to maintain its cautious and conservative approach to crypto regulation, with little change anticipated.”

Altcoins also Disappoint

The recent poor performance was not limited to Bitcoin. Altcoins have also been underperforming recently, with most down 5% or more over the last seven days.

Ether, the leading altcoin by market cap, is trading below $2,400 after losing 2% of its value in the last 24 hours. Solana’s SOL is the worst performer in the top 10, down 2.3%.

Despite the bearish conditions of the broader market, Uniswap’s UNI is up 7%, making it the best performer in the top 50. The total crypto market cap continues to decline and now stands at $2.13 trillion.