Bitcoin Faces Further Price Drop Amid Government Move

After starting the week strongly, Bitcoin has recently seen a downturn. Currently priced at $66,500, Bitcoin has slipped by 4.5% in the past 24 hours.

This decline may be linked to the U.S. government’s recent transfer of $2 billion in Bitcoin seized from the Silk Road operation.

Veteran trader Roman Trading forecasts that Bitcoin might drop further to around $60,000.

$BTC 1D

Eyeing price targets of 64 & 60k respectively.

Showing bear divs with a possible DT reversal setup.

My bet is sentiment gets ultra bearish at these levels then we full send up once again.#bitcoin #cryptocurrency #cryptonews pic.twitter.com/YWPA6kPRoY

— Roman (@Roman_Trading) July 29, 2024

He points to bearish divergence on the 1-day chart, where despite price highs, momentum indicators like RSI and MACD are not aligning.

This pattern could signal a possible double-top reversal, suggesting Bitcoin might be on the verge of a correction.

The recent decline from $69,811 to around $66,500 adds weight to this bearish outlook. Roman Trading highlights that Bitcoin’s ability to hold the $66,000 resistance level is crucial. If it fails, attention will shift to potential support levels at $64,000 and $60,000.

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Why is Bitcoin (BTC) Back to $67,000?

Additionally, the U.S. government’s transfer of $2 billion in Bitcoin might have influenced the market. The transfer, involving 29,800 BTC moved to a new address and then dispersed further, followed Donald Trump’s recent announcement to acquire Bitcoin.

Despite the current negative sentiment, Roman Trading remains hopeful. He suggests that an overly pessimistic market could set the stage for a significant price rebound, as anxious traders might create favorable conditions for a future rally.