Investing.com – Bitcoin dropped to $63,259 on Monday, shedding 2.64% in the past 24 hours, which follows what analysts describe as technical overbought conditions in the market.
Bitcoin’s recent decline is part of a broader correction that started after the cryptocurrency hit the resistance trendline of its descending channel pattern. The price has dropped over 5% from this resistance level, with further declines potentially bringing BTC to support levels around $63,000 or lower.
Despite the dip, the original cryptocurrency is on track for its best September in years, rising by at least 7% month-to-date. Historically, September has been a challenging month for Bitcoin, which has posted losses in eight of the past 11 years. However, the recent gains put Bitcoin in a strong position going into October, which has historically seen average gains of 23%.
In the wider crypto market, crypto ETFs saw $1.2 billion in inflows last week, the largest total since mid-July. U.S.-based funds accounted for $1.17 billion of the total, with most of the inflows linked to expectations of further interest-rate cuts by the Federal Reserve.
Bitcoin-focused funds attracted over $1 billion in inflows, while Ethereum products broke a five-week losing streak by adding $87 million.
Bitcoin’s decline also mirrored similar moves in U.S. stock markets, reflecting reduced risk appetite ahead of several key economic reports due this week, including U.S. jobs data and a speech by Federal Reserve Chair Jerome Powell.
Futures tied to the federal funds rate currently favor a modest 25-basis-point interest rate cut, with lower rates historically being positive for Bitcoin.
Elsewhere, the drop followed reports of Israeli airstrikes on central Beirut, marking the first such attack in nearly a year amid ongoing hostilities with Lebanon’s Hezbollah. Bitcoin has previously reacted negatively to unrest in the region, with a similar pattern observed five months ago when the cryptocurrency dropped over 10% following an Israeli strike on Iran.
Despite being promoted as a hedge against instability, Bitcoin often sees sell-offs during times of geopolitical crisis as traders exit riskier assets in favor of safer alternatives.
