Bitcoin is facing strong headwinds. The price has broken two key support levels, $60,000 and $156.500, in rapid succession. On the surface it might appear as if fear grips the market. The market is apprehensive, particularly for those who use BTC as collateral in DeFi protocols.
Bitcoin Market Still Fearful
One analyst at a chain of stores, on the other hand, is taking to X as prices fall. argues The market has not yet been fully seized by fear or panic. The analyst pointed to the Bitcoin Daily Actualized Profit-Loss ratio and said that the market could withstand further losses if there was no increase in addresses with a red background, which would indicate panic sales.
Analysts have concluded that the absence “panic selling” The bars indicate that investors have not fully processed the recent events. Analysts said the market could fall as low as $47,500 even as prices plummet below $56,500. “doesn’t look as terrible as it did three weeks ago when we were at 70,000.”
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The analyst said that, despite this needed correction, it was important to have a slower shakeout. So, the market will experience a much more ordered correction.
Bitcoin is currently under intense selling pressure. As of the 5th July, Bitcoin has fallen nearly 30% since its all-time highest. After the recent drop to below $56,500, the coin has clearly entered a breakout bear formation. This sell-off forced the coin’s price to drop from its March-2024 range. After the explosive growth in Q1 of 2024, when the coin reached $73,800, this marks a new stage.
Analysts predict more losses, with the sellers at the wheel and Bitcoin in a bear breakout pattern. As of now, support has been found at the highs in January 2024, which is $50,000.
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Another analyst believes that the current drop in BTC could make it the perfect time to buy more BTC for a discounted price. The analyst took to X. pointed out several fundamental factors This paints a bullish long-term picture.
Other Readings This Dormant Bitcoin Wallet Holding $6.8 Million BTC Just Reactivated, Are They Selling?
There are also regulatory improvements in the Bitcoin ETF market. The regulatory environment is also clear. United States The highly-contested presidential elections are just around the corner. Analyst is also convinced that the upcoming $16 Billion payout from FTX trustees could be a big positive for BTC bulls.
However, stability is not guaranteed until the week-long selloff has been countered. uptick In new addresses. This would indicate that investors have flooded in and demand has been created for the coin. Prices are currently falling and less addresses are created.
Chart from TradingView, Featured image by DALLE
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Source: www.newsbtc.com
