Top 3 Reasons for Todays Bitcoin Price Decline Is it Time to Sell
Key Points:
– Bitcoin’s price dropped below $68,000 due to upcoming US inflation data and resistance levels.
– Investors are moving towards stablecoins amidst market volatility.
– Despite recent setbacks, Bitcoin bulls remain optimistic about the long-term outlook.
The cryptocurrency market recently experienced a significant decline, with total value dropping by over 3% to $2.59 trillion. Bitcoin, the dominant player in the market, fell below $68,000, settling at around $67,600 on Tuesday. Additionally, the crypto derivatives market suffered losses of $164 million in just one day, with long traders losing over $140 million.
Amidst the shaky market conditions, many cryptocurrency traders sought refuge in stablecoins. Reports indicate that Tether USDT, with a daily trading volume averaging $47 billion, surpassed both Bitcoin and Ethereum combined.
The current market uncertainty can be attributed to several factors. Firstly, all eyes are on the upcoming release of the Consumer Price Index (CPI) data by the United States Bureau of Labor Statistics, along with the Federal Reserve’s FOMC statement, economic projections, and interest rate decisions. While expectations point towards unchanged interest rates in the US, recent rate cuts by the ECB and the Bank of Canada have added to the tension.
Bitcoin has been struggling to break past the $72,000 resistance level for the past four months, despite interest from major investors. Technical analysis indicates a potential head and shoulders (H&S) pattern forming on a weekly basis, along with bearish weekly divergence on the Relative Strength Index (RSI), suggesting a challenging road ahead for Bitcoin. However, supporters remain confident, citing recent halving events, regulatory clarity, and increased adoption.
Even spot Bitcoin ETFs in the US, holding over 1 million coins, faced a net outflow on Monday after enjoying positive cash flow for over two weeks. This shift in investor sentiment is evident from BlackRock’s modest $6.3 million cash flow on Monday.
Looking ahead, where do you predict the price of Bitcoin will go in the coming months? Share your thoughts on the future of Bitcoin!