Halving Effect
Bitcoin’s recent price drop is partly due to the upcoming Bitcoin Halving, which is expected to happen within the next 30 days. According to analyst Rekt Capital, Bitcoin is in the “Final Pre-Halving Retrace” phase, which typically involves a price pullback.
Profit-Taking by Long-Term Holders
Long-term Bitcoin holders are starting to sell their coins, as evidenced by increased movement in coins that have been dormant for over a year. This profit-taking has contributed to the price decline.
Bearish Sentiment
The current market sentiment for Bitcoin is bearish, with more traders liquidating long positions than short positions. This suggests that many traders expect further price declines.
Conclusion
Bitcoin’s price drop below $63,000 is influenced by a combination of factors, including the Halving, profit-taking by long-term holders, and bearish market sentiment. While some analysts expect the price to recover, others predict further declines in the short term.
