The world’s largest cryptocurrency Bitcoin experienced a sudden decline in its price, falling below the crucial threshold of $62,500, marking a decrease of about 9% in the last 24 hours.

Bitcoin’s upward momentum fueled by Hong Kong’s announcement approving the spot Bitcoin and Ethereum ETFs is now showing signs of weakness. Recently, Shanghai Reuters reported that Hong Kong’s securities regulator has approved the first batch of Bitcoin and Ethereum ETFs. 

At this stage, the markets are under significant selling pressure, due to various global factors affecting both cryptocurrencies and traditional markets. This could be a key factor contributing to the downturn, as Bitcoin prices remain under intense bearish pressure with limited potential for a recovery. 

Another significant reason for the bearish movement toward Bitcoin is the formation of a double-bottom pattern below current levels, coupled with ample liquidity necessary for large-scale orders to be executed by whales. 

The price concluded the previous day on a bearish tone and commenced the trading day below those levels, indicating continued dominance by the bears. This trading scenario seems unfavorable for the bulls, suggesting further bearish activity in the days ahead. 

With only three days remaining until the Bitcoin halving event, the markets are experiencing a sharp downturn. While some traders view it as a minor setback, the markets are poised for a varied price moment, currently exhibiting extreme volatility. 

Hence, it seems increasingly probable that the markets could decline, given the presence of fair value gaps below current levels, which typically tend to be filled. 

Furthermore, BTC price has consistently been establishing lows between $61,000 and $62,500 over the past few days, indicating a lack of strength from the bulls. Therefore, the bears are expected to unleash a huge pullback, if the price goes below this bearish range and fills the gap. If this happens, it could potentially result in a 20% decline, bringing the price close to $52,000. 

At press time, Bitcoin (BTC) is trading at $62,575.72.