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The cryptocurrency market is in a downtrend again. Bitcoin price briefly fell below the important threshold after testing the $60,000 support level for the ninth time.
Fortunately, Bitcoin has managed to rally back to $60,500, temporarily nullifying the worst-case scenario of a drop to $48,000.
Large cap altcoins also suffered big losses, with Dogwifhat, Ethereum Name Service, and Brett all seeing double-digit declines.
The cryptocurrency market crash has seen investors flock to pre-emptive projects again, given that they are not affected by short-term price movements. New cryptocurrencies like WienerAI and Pepe Unchained are still in high demand among retail and savvy investors alike.
Why did cryptocurrencies fall today?
Opinions are mixed on why the cryptocurrency markets are down today.
Some experts believe that the Bitcoin price simply closed the CME gap last week. The CME gap is formed over the weekend and is the difference between the closing price of BTC on the Chicago Mercantile Exchange on Friday and the opening price when trading resumes on Monday.
This phenomenon occurs because the CME, like other stock markets, does not trade on weekends, unlike Bitcoin.
#bitcoin ✅ Successful Double CME Gap Fill pic.twitter.com/aKnBKPsxiq
— Daan Crypto Trades (@DaanCrypto) July 3, 2024
Other traders believe that today’s BTC down move is largely benign, with the price simply backtesting the demand zone.
However, many experts are much more cautious about Bitcoin continuing to test the $60,000 support level.
For example, crypto analyst Nebraskangooner (@Nebraskangooner) believes that BTC is in the danger zone on the weekly timeframe. He believes that a weekly close below $60,000 could lead to a larger correction.
Likewise, popular trader DonAlt (@CryptoDonAlt) called $60,000 a “fake support” level that may not hold for much longer. He believes Bitcoin price needs to reclaim the $63,800 resistance level or else it risks a major drop to $52,000.
$Bitcoin update:
The crappy bear retest worked fine.
I don't know if the fake support will ever do its job again.It would be wise to be cautious on everything until $63.8 is recovered or lower support is formed.
Until then, assume there is no risk. pic.twitter.com/wruaRFX2c3— DonAlt (@CryptoDonAlt) July 3, 2024
A report from Forbes also attributes BTC’s weakness to broader macroeconomic risks, including recent comments from Federal Reserve Chairman Jerome Powell claiming that U.S. deficits are unsustainable.
Is a Bigger Correction Coming for Bitcoin?
As the cryptocurrency markets continue to decline, many investors are wondering if another, bigger drop is coming.
Experts believe this scenario is not impossible. For example, popular trader Daan Crypto Trades (@DaanCrypto) believes that the market could face another panic if Mt. Gox starts a rehabilitation program. He expects there to be strong selling pressure at first, but it will eventually subside.
However, most experts agree that Bitcoin's weakness is temporary and that the decline is merely a buying opportunity.
For example, Federal Reserve Chairman Jerome Powell has warned about the level of the US deficit, but he has also signaled that disinflationary trends could resume, which raises the possibility of a larger-than-expected rate cut this year. This would certainly be a bullish scenario for Bitcoin and major altcoins.
Selling pressure from miners also appears to be slowing down. For example, Marathon Digital, the world’s largest Bitcoin miner, did not sell any BTC in June.
World's Largest Marathon Digital #bitcoin Miner, didn't sell anything $Bitcoin In June, he held 18,536 Bitcoins worth $1.1 billion. pic.twitter.com/0QUd2dXoZr
— Cointelegraph (@Cointelegraph) July 3, 2024
More importantly, Bitcoin price continues to remain strong above the $60,000 level in the short term. Any retest could potentially be the last before a major upside move towards new all-time highs.
Crypto Presale Demand Is High
Bitcoin’s weakness has had no effect on the high demand for crypto presales. On the contrary, investors continue to accumulate such tokens as they are indifferent to short-term price movements.
For example, WienerAI achieved its $7 million ICO goal today thanks to its combination of AI and memes.
In fact, AI tokens and meme coins are two of the most in-demand niches during this bull cycle, which may explain why there was such strong initial demand for WAI.
Similar to Floki, the project will be launching its own AI-based trading bot. Token holders will get alpha trading signals, MEV protection, and seamless swaps, all at no additional cost. WienerAI describes the new bot as ChatGPT for cryptocurrencies.
https://www.youtube.com/watch?v=sVjJ13T_gzU
Experts are bullish on the upside potential of this market due to WAI's unique value proposition, with some even predicting 100x returns.
Similarly, Pepe Unchained (PEPU), a new alternative to Pepe, reached the $2 million milestone in its ICO this week.
The new meme coin introduces a revolutionary concept: launching its own layer 2 blockchain for low transaction fees, fast transactions, and high staking rewards. In fact, the PEPU staking pool is currently offering almost 900% APY.
https://pepeunchained.com/ko/dashboard
Considering that even the less practical Pepe-like games are seeing significant growth, savvy investors are also betting big on Pepe Unchained.
Both projects have recently been featured in Cointelegraph, Bitcoin.com, CryptoDaily, and several other major cryptocurrency news outlets.
Disclaimer: This is a sponsored article and is provided for informational purposes only. It does not reflect the views of Crypto Daily and is not intended to be used as legal, tax, investment or financial advice.
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