Markets
Crypto Markets Are Crashing Hard, Here’s Why Traders Are Turning Bearish on Bitcoin
The crypto market is in free fall! Bitcoin Price fell below $68,000! The majority of altcoins are slowly sliding into the bearish well. These current market scenarios have caused huge concerns among market participants who were speculating on a strong recovery. However, after the recent bearish weekly close, the possibility of a positive week ahead was lower than average. As a result, bearish activity exceeded expectations, causing the total market capitalization to decline by almost 2.8%.
Bitcoin price has seen a nice bullish move, with increased BTC ETF spot accumulation marking new highs. After a brief halt, accumulation resumed and reached new monthly highs. However, the ETF has broken the 19-day green streak and hence traders are not in the mood to take risks ahead of the USCPI release and a FED meeting. As a result, the BTC price fell to its weekly low.
Is Bitcoin in danger? Will BTC price plunge sharply and test the lower support zone?
The current trading pattern suggests that the price remains under bearish influence, as the global market momentum has just shifted from an uptrend to neutral to a downtrend. However, the recent slump can be seen as a short-term pullback as the price continues to hint at the possibility of a bullish reversal in the coming days.
The DMI has entered a decisive phase, which can lead to either a breakout or a rupture. Additionally, the current trading setup favors a continuation of a downtrend as OBV heads south. Therefore, BTC price is expected to continue its downward trend and reach lower support below $65,000. However, until the price remains above $65,000, the trend may remain under bullish influence, thus maintaining hopes of a bullish breakout.
Collectively, the price of Bitcoin (BTC) remains in a decisive phase, regardless of bearish price actions causing certain obstacles.