BTC price drops to $62,000

Bitcoin price sees slight pullback after surging to $60,000 in sync with global stock markets.

Bitcoin

$60,980

As the market edges higher following a fresh round of liquidations, it attempts to reclaim $62,000 on August 3.

BTC Price Tests $60,000 Amid Equity Sell-off

BTC prices on Bitstamp rebounded 3% after hitting a new multi-week low of $60,435, data from Cointelegraph Markets Pro and TradingView showed.

It was a grim day for global equities, with a 6% drop in the Nikkei bringing more losses to Wall Street. Much weaker-than-expected U.S. jobs data added to the panic.

Bitcoin itself lost nearly $5,000, abandoning several key support lines, including the short-term holders cost basis.

As a result, liquidations increased, with data from monitoring resource CoinGlass showing total losses for cryptocurrency longs reaching $230 million on August 1 and August 2.

“Yields are falling off a cliff in the U.S. market following a surprisingly poor jobs report,” wrote Michaël van de Poppe, founder and CEO of trading firm MNTrading, in a commentary on X.

“There is a general mild panic in the market as markets price in a deep recession in the U.S.”

Van de Poppe believes that recent events may have strengthened the odds that the Fed will cut rates at its next meeting in September, a key bullish catalyst for cryptocurrencies and risk assets.

“One thing is certain: the September rate cut is confirmed,” he concluded.

Trading Resources The Kobeissi Letter, meanwhile, summed up the macroeconomic situation as full of mixed signals.

“Yesterday, the discussion was whether there would be a rate cut in September. Today the discussion is whether the cut will be 25 basis points or 50 basis points,” part of its latest X report explained.

Data from the CME Group FedWatch Tool showed that the market probability of a 0.25% rate cut on the same day was 78%.

Global liquidity provides a reason for a Bitcoin bull market

Despite the market shock, the bullish view on Bitcoin remains.

Jeff Ross, founder and managing director of hedge fund Vailshire Partners, said that increased global liquidity will boost Bitcoin's future price action.

Ross uploaded a chart to X comparing global M2 money supply to BTC/USD and the latter's 50-week and 200-week simple moving averages (SMAs).

"Bitcoin forming an inverse head and shoulders pattern (on the weekly chart) on the backdrop of an increase in global M2 money supply? This would be super bullish from a technical assistance and liquidity perspective," read part of the accompanying commentary.

Even before the sharp drop, we reported that traders were increasingly expecting Bitcoin to retest the bottom of its long-term trading range.

“Bitcoin has been trading in this range for more than 5 months,” noted prominent trader Daan Crypto Trades.

“As the range continues, we are seeing lower lows and lower highs. The key levels for lows and highs remain $59,000 and $74,000.”

This article does not contain investment advice or recommendations. Every investment and trading action involves risk, and readers should do their own research when making a decision.