Bitcoin encountered significant selling pressure after the Wall Street opening on July 29, as attempts to reach the $70,000 mark were decisively rejected.
Data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin’s price dropped by 4.5% following a distribution phase.
After a steady climb over the weekend and during the initial Asian trading session, BTC/USD lost steam when Wall Street reopened, falling from a high of $70,016 on Bitstamp to a low of $66,839.
This price movement coincided with a notable transfer from a wallet linked to the U.S. government, involving approximately $2 billion in Bitcoin.
Trader Skew noted, “Transfer went to a fresh wallet by looks of it which typically is the precursor of OTC related auctions,” suggesting potential impacts on supply and price.
Charles Edwards, founder of Capriole Investments, expressed concern over the recurring pattern of government-related Bitcoin distributions affecting price trends.
He commented, “Just when you think all the excess supply dumping is over, the current admin finds another way to screw us.”
Analyzing recent market dynamics, Skew highlighted significant profit-taking at higher price levels, observing, “That push up from spot takers was met with passive spot selling, hence price didn’t sustain above $70K on LTF.”
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The $69,000+ region remains a crucial psychological and liquidity threshold for Bitcoin, echoing its previous all-time high in 2021.
CoinGlass data indicated that while the liquidity above $69,000 remained intact, the price dipped to lower levels to access liquidity.
Skew anticipated further downside, noting bulls’ struggles to stabilize the market. Josh Rager, another well-known trader, cautioned that the market could see a series of lower highs, leading to a potential downtrend.
Trader CrypNuevo speculated on choppy price action ahead of the Federal Reserve’s meeting on July 31, stating, “When there is a big event like this FOMC, markets tend to be choppy until the news comes out.
“Big players step in with caution.
“Not an easy week.”
He also shared a chart suggesting possible Bitcoin price movements around the Fed’s decision.
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