Here are the main reasons why Bitcoin dipped below $63k

Last week, good news about Bitcoin, especially from the Bitcoin 2024 meeting, made people very excited. This week, though, the market has slowed down, which has caused a mood swing.

The price of the coin dropped almost 8% to around $62,600, and it has since risen about 30% from its July lows. Short-term traders who bought on the dip may now want to sell, which will add to the current retracement.

Based on AMBcrypto’s study of the Fibonacci reversal, the next turning point could happen between $61.921 and $59,693. When the hype died down, the market seemed to be careful because of FOMC data and the upcoming FED meeting.

When economic news is uncertain, it can affect investment choices. This is why many traders sell their positions and wait for things to clear up before making their next move.

The market became even more worried about sell pressure when new data from Mt. Gox showed that Bitcoin had sent 47,229 BTC to unnamed wallets in the last 24 hours. It would cause sell pressure worth about $3.8 billion if the moving BTC were dumped into the market.

This week’s quick drop may have been caused in part by Bitcoin’s long positions. BTC fell quickly below the two leveraged long positions, which could have given short buyers more opportunities to sell below the price.

Recently, the US government moved $2 billion worth of Bitcoin it got from the Silk Road to different addresses. This might be in line with what Donald Trump said. Trump said if wins the election again, he wants to stop selling Bitcoin that belongs to the government.