Bitcoin Owners Are Sitting on Big Losses After the Crypto Selloff. It’s a Bearish Sign.
Bitcoin and other cryptocurrencies remained stable on Wednesday after a significant decline, indicating a bearish trend supported by technical factors.
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Posted 8/23/2023, 9:49:00 AM
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Bitcoin's price chart resembles the stock market in the 1930s, suggesting that the cryptocurrency could be heading towards a major drop, according to Bloomberg's senior commodity strategist, Mike McGlone.
Bitcoin (BTC) remained stagnant around the $26,000 mark despite being heavily oversold, leading to concerns about a potential lower low and a decline to sub $20,000 levels, although some analysts are hopeful for a V-shaped recovery and a return to focus on $26,500.
The cryptocurrency market has experienced a notable downturn, with the total market capitalization falling by 10% and triggering significant liquidations on futures contracts, attributed to factors such as rising interest rates, inflation, delays in approving a Bitcoin exchange-traded fund (ETF), financial difficulties within the Digital Currency Group (DCG), regulatory tightening, and a strengthening US dollar.
Bitcoin may experience a period of stagnation before turning bullish again, according to crypto analyst Jason Pizzino, who believes that the cryptocurrency could remain in its current pattern for the next couple of months before potentially surging in late 2021 or early 2024.
Key social metrics suggest that cryptocurrency markets may soon rebound, as the use of the term "bear market" has reached an 11-week high on social media platforms, which historically indicates that price rises are likely; additionally, deep-pocketed investors are accumulating Bitcoin again, contributing to a recent rally.
Bitcoin remains on track for a massive bull cycle despite recent price decline, as indicated by broader indicators of its price patterns and the use of logarithmic growth curves. The 200-week moving average is seen as less significant as a key price support level for Bitcoin, and the analyst is also looking for an entry point for Ethereum.
Bitcoin and Ether remain stable as cryptocurrency investor sentiment remains cautious, although JPMorgan analysts report a slowdown in downward price momentum, and the Forkast 500 NFT Index gains after a surge in sales of Donald Trump's signature NFT collection following his arrest.
Bitcoin and other cryptocurrencies are experiencing a decline, with Bitcoin falling below $26,000, as traders remain cautious following Federal Reserve Chairman Jerome Powell's speech.
Long-term holders of Bitcoin are continuing to accumulate the cryptocurrency despite recent market volatility, indicating a bullish outlook for the future, according to analysts from Bitfinex. However, newer long-term holders who acquired their positions during the bear market are showing more unease and have exited their positions during price drops.
Crypto analyst Benjamin Cowen believes that Bitcoin is likely to follow its historical bearish price action seen in pre-halving years and predicts that the cryptocurrency will remain within a range of $12,000 to $35,000 for the rest of 2023.
Cryptocurrency industry observers argue that Bitcoin is not in its longest bear market and may not even be in a bear market at all, as the definitions of bull and bear markets are subjective and can vary based on different interpretations. Some believe that Bitcoin has been in a bear market since its peak in November 2021, while others argue that Bitcoin has been in a continuous bull market since 2019.
Bitcoin, the first leading cryptocurrency, has been the top-performing asset over the past decade and offers a hedge against inflation and potential diversification benefits for portfolios.
Bitcoin and other cryptocurrencies experience a decline as the Securities and Exchange Commission slows down the decision process for crypto exchange-traded funds.
Most of the top cryptocurrencies remain stable, with minimal gains or losses over the past week, except for TON, which increased by 22%, and Bitcoin Cash, which rose by 8.6%, driven by positive developments in the TON ecosystem and the Grayscale/SEC news.
Stablecoins are designed to reduce crypto market volatility by tying their value to a reliable asset, providing investors with stability, transparency, and access to the financial system while minimizing risks.
The dollar remained stable as investors weigh US jobs data that showed signs of cooling and the likelihood of the Federal Reserve ending its monetary tightening cycle.
Despite the recent downturn in the crypto market, a key Bitcoin metric shows that 95% of the existing supply of Bitcoin has not moved in the past 30 days, indicating strong holding behavior and potential for a price rally with a buy-side catalyst.
Bitcoin (BTC) remains near a key long-term trendline as the U.S. dollar strengthens, with market participants predicting further downside for BTC and altcoins.
Bitcoin, Ethereum, and Dogecoin remained relatively stable as the global cryptocurrency market cap increased slightly, while the Financial Accounting Standards Board endorsed regulations for accounting fair values of companies' cryptocurrency holdings.
Despite Visa's announcement and warnings from Binance's CEO, major cryptocurrencies such as Bitcoin and Ethereum are struggling in a bearish trend while a top Federal Reserve official expresses deep concern over the $120 billion stablecoin market.
Bitcoin and other cryptocurrencies have rebounded from recent lows, but facing downside momentum and September worries, it may be difficult for them to maintain their recovery.
Bitcoin's hash rate is near a record high, addresses holding 0.1 BTC are at an all-time high, and the amount of Bitcoin held on exchanges is declining, indicating bullish fundamentals for the cryptocurrency.
The price of bitcoin rebounds by 4.5% as fears around FTX liquidations ease and investors cover short positions, but uncertainty remains due to weakened momentum and lack of clear market catalysts.
Bitcoin, ethereum, and other top cryptocurrencies have been struggling recently despite the market conditions, as the bitcoin price drops and Coinbase plans to integrate bitcoin's lightning network, potentially causing crypto price chaos.
Bitcoin and other digital assets are at risk of a deeper market correction due to the contraction of stablecoin liquidity, according to crypto analyst Nicholas Merten.
Despite claims of a bear market, indicators like website traffic suggest that cryptocurrencies may not be experiencing a decline, as some major platforms have seen a significant drop in traffic while others have experienced an increase.
Bitcoin experienced volatility as the Federal Reserve maintained interest rates, with experts predicting no more rate hikes and the potential for Bitcoin to trend upwards.
Bitcoin and other cryptocurrencies experienced a decline after the Federal Reserve decided not to raise interest rates, suggesting that significant gains may not be anticipated in the near future.
Bitcoin (BTC) price remains stagnant and unaffected by recent macroeconomic events, leading traders to believe that it will continue to trade within a range until proven otherwise.
Ark Invest's recent report highlights the recovery of Bitcoin's realized capitalization, the decline in liquidity and trading volumes, the recent increase in volatility, and the optimistic long-term outlook for the cryptocurrency.