Bitcoin (BTC) Price Prediction: BTC Dropped to a Low of $59,918, Its Lowest Point Since May 1st

Bitcoin price was trading lower on Thursday as a negative sentiment in the crypto industry continued while the German government dumped more tokens.

The price of Bitcoin dropped on Thursday as the negative sentiment in the crypto industry continued. This comes as the German government is reported to have sold more tokens.

The BTC token dropped to a low of $59,918 during the early hours of Thursday, which marks its lowest point since May 1. It has also moved into a technical bear market, dropping by 20% from its highest level earlier this week.

Peter Schiff, a well-known financial personality and Bitcoin bear, has continued to warn about the coin. In an X post on Thursday, he warned that the coin will drop sharply if it fails to hold a crucial support level.

“As you can see #Bitcoin is at critical support. If it doesn't hold, look out below. It's a long way down.”

Schiff is known for being one of the most high-profile bears in the market, having recommended investing in gold over the years, which he sees as the best alternative to the US dollar.

This view aligns with what was reported on Wednesday, where the charts showed $56,534 as a key support level. That price is the neckline of the quadruple top pattern at $71,780 and also the 200-day moving average level. As a result, if this support is broken, there is a possibility that it will drop to the psychological level at $50,000, followed by $44,000.

Bitcoin’s sell-off accelerated after on-chain data showed that the German government is continuing to sell its Bitcoin holdings.

It moved 3,000 coins to Bitstamp, Coinbase, and Kraken. At current prices, the new tranche is valued at over $174 million. It now holds 40,359 coins, which are valued at over $2.3 billion and will likely be sold off.

Germany is not the only entity that is selling its Bitcoins, as there are signs that Bitcoin miners have begun to capitulate by selling their holdings. According to Julio Moreno of CryptoQuant, these companies would begin to capitulate if Bitcoin faces strong resistance.

There are also signs that the US government will begin selling Bitcoins valued at over $9 billion. These coins are linked to Mt.Gox, an exchange that collapsed in 2014.

This is all occurring at a time when data shows that the amount of Bitcoin balances in exchanges has continued to rise over the last few days.

The other risk is tied to US politics, where the consensus view is that Joe Biden will resign and be succeeded by a stronger candidate. Kamala Harris, Gretchen Whitmer, Gavin Newsom, and Michele Obama are among the candidates who have been mentioned.

These candidates would have a chance to defeat Donald Trump, who is regarded as a presidential candidate who is more favorable to cryptocurrencies.

Meanwhile, Bitcoin futures open interest has continued to fall, which is a bearish indication.

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