Bitcoin‘s price recently fell below the critical support level of $57,000, which has heightened concerns about further short-term declines. The downward trend is also evident in the altcoin market, reflecting the largest cryptocurrency’s struggles.
Current Market Sentiment
Bitcoin experienced a 4% drop this week, trading around $56,786 at the time of writing. Market sentiment remains cautious, with investors hesitant to make new purchases until the ongoing correction stabilizes. The Fear and Greed Index for Bitcoin has plunged to 22%, indicating extreme fear and potential for further market capitulation. Access COINTURK FINANCE to get the latest financial and business news.
Altcoin Market Impact
The altcoin market is mirroring Bitcoin’s downward trajectory, suggesting persistent medium-term pressure. In addition, whales, who are significant market influencers, have shown decreased interest since August. U.S. spot Bitcoin ETFs have seen cash outflows for seven consecutive days, with a net outflow of $211 million reported on Thursday, primarily from Fidelity’s FBTC. Only BlackRock’s IBIT ETF avoided recent outflows.
On-chain data indicates that some whales are moving their BTC to exchanges, intensifying the downward trend. Despite this, the total BTC supply on centralized exchanges has decreased over the past five months, suggesting that long-term investors remain resilient against current market volatility.
Concrete Insights and Predictions
– Consider waiting until the market correction stabilizes before making new investments.
– Monitor the Fear and Greed Index for signs of market sentiment changes.
– Be aware of whale movements to exchanges as they can influence market trends.
– Note the performance of Bitcoin ETFs, especially those with significant outflows like Fidelity’s FBTC.
Experts Warn of Potential Deeper Declines
Seasoned analyst Peter Brandt has observed that Bitcoin’s price forms a macro megaphone pattern, often a precursor to significant upward moves. However, he cautions that the current downward trend overshadows potential gains. Brandt predicts that Bitcoin might revisit the support level around $46,000 despite a possible interest rate cut in the coming weeks.
BitMEX co-founder Arthur Hayes echoes these concerns, forecasting that Bitcoin could dip below $50,000 before achieving new highs.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-faces-increased-selling-pressure