Bitcoin Price Today BTC Value Slides as LargeScale Selling and Market Anxiety Take Hold
Bitcoin (BTC) ended last week on a bearish note as it fell below the crucial support level between $56,500 and $61,466. Despite the formation of a macro bullish flag, there is a growing sense of panic that has increased overall fear. During the early European session on Monday, Bitcoin’s price hovered around $55,422, causing the fear and greed index to drop further to 28, indicating more fear in the market.
In the past five days, Bitcoin’s price consistently closed below the 200-day Moving Average (MA) for the first time since last October. This bearish sentiment can be attributed to heightened selling pressure from whales. The German government has been selling off its Bitcoin holdings in recent weeks, with reports suggesting the possibility of a buyback over the weekend. However, on Sunday, the country still sold coins worth over $85 million.
Additionally, US-based spot Bitcoin ETFs have experienced low demand recently, as BTC miners have been selling at an accelerated rate to cover operational costs. The crypto industry is eagerly awaiting economic clarity from the US Federal Reserve later this week. The anticipated interest rate cut in the US, expected later this year due to the upcoming general election, is likely to trigger a bullish outlook for the crypto market. Furthermore, major stock indexes have recently shown a bullish outlook.
Looking ahead, Bitcoin’s price has been forming a weekly bullish flag over the past four months, indicating the potential for a new all-time high later this year. According to crypto analyst Benjamin Cowen, Bitcoin’s price must reclaim the 200-day Simple Moving Average (SMA) as a support level in order to increase the chances of a bullish recovery in the fourth quarter.
Cowen also predicts that Bitcoin dominance will continue to rise in the coming months, potentially reaching 60 percent between September and December of 2024. However, he believes that Bitcoin dominance will decline in 2025, opening the door for the highly anticipated altseason.