Bitcoin Slides Below $70K: Is the Rally Coming to an End?

• Bitcoin has slipped under the $70,000 mark.
• The leading currency’s performance has been positive in recent weeks.
• Industry participants remain optimistic for a market surge.

The last days of ‘Uptober’ went out with a bang, as Bitcoin (BTC) suddenly picked up momentum in the revival of the long-awaited uptrend many thought was long lost. The rally saw the crypto market giant briefly top the $73,000 price point, marking its highest in over seven months.

Amid the excitement, however, a recent slip in price has raised questions about the rally’s staying power. 

Bitcoin’s Flash Dip

Bitcoin recently dropped below the $70, 000 peg it has maintained all week. According to CoinMarketCap data , the crypto king slipped approximately 4% in the early hours of November 1, 2024, reaching a low of $69,048.  

While it quickly recovered to trade at a current value of $69,444, the decline in price marked the first break in BTC’s week-long upward trend.

However, industry participants remain unfazed, with many optimistic that the token will maintain its bullish momentum. Market analyst Rekt Capital previously noted that only a fall below $69,000 would significantly impact BTC’s trajectory, suggesting that the resilience above this level signals that the overall trend remains strong. 

Crypto investor Mike Alfred also emphasized that the present momentum “is an incredible set up” for Bitcoin, predicting new highs for the market giant. Beyond that, the crypto investor also believes there is an additional factor at play that could fuel an uptick.

Is Bitcoin’s Supply Waning?

Investor Alfred suggests that an even more explosive rally may be around the corner, fueled by an ongoing supply shortage. According to him, there are widespread reports of OTC (over-the-counter) desks struggling to source enough Bitcoin. 

Such shortages on OTC desks indicate growing demand among institutional investors, which could signal a looming price surge. 

Alfred’s comments build on previous reports in October that supply on crypto exchanges has reached a six-year low, hovering just around 2.8 million BTC which marks the lowest level since November 2018.

Supply constraints and tightening liquidity are often considered bullish signals for the market, as they can create significant upward pressure on prices.

On the Flipside

• Despite the reports that Bitcoin’s supply on exchanges has decreased, it isn’t always a clear indicator of a price rally.
• Bitcoin ETFs recently recorded millions in inflows amid BTC’s uptick.

Why This Matters

Volatility is inherent to the crypto market, making Bitcoin’s recent slip not unusual. However, to uphold investor confidence, the crypto giant must quickly regain its footing and resume its upward trajectory.

Read this article to learn about Florida’s big bet on Bitcoin:
Bitcoin in Public Finance? Florida’s Bold $800M Crypto Gamble  

Millions in Mt. Gox’s BTC are on the move, discover more in this article:
Mt. Gox Resumes BTC Shuffle, Are Repayments Back on Track?