Bitcoin’s price recently fell below the $59,000 mark, sparking concerns among investors. Although it managed to climb back above $60,000, the fact that it closed below the 50 and 200-day moving averages has sent a clear bearish signal to the market. This has heightened worries about a potential major downturn.
Market Losses and Liquidations
In the past 24 hours, the crypto market lost 2% of its total value, dropping to $2.21 trillion during the Asian trading session. Approximately $200 million worth of positions were liquidated, with long positions being the most affected. This volatility underscores the fragility of the market and has left many investors on edge.
Bitcoin Price Decline: Uncertainty Persists
Meanwhile, crypto whales have taken advantage of the market’s volatility to make quick profits. On-chain data reveals that in the past three days, whales have sold 30,000 Bitcoin, valued at around $2 billion. This large-scale selling has weakened the market’s bullish sentiment even further.
Whale Activity and Bitcoin Sales
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These significant whale sales have created downward pressure on Bitcoin prices. For instance, on Thursday, more than $109 million flowed out of U.S. spot Bitcoin ETFs, with Fidelity’s FBTC ETF leading the way. Furthermore, as reported by The Bit Journal, the Chinese government is planning to sell $1.3 billion worth of Ether, which adds further pressure to the market. The Ethereum Foundation and U.S. spot Ether ETFs are also continuing their sales, contributing to the overall bearish trend.
On Thursday, U.S. spot Ether ETFs saw $15 million in outflows, signaling growing concerns in the Ethereum market as well. The broader crypto market continues to reel from these Bitcoin and Ether sales.
More Downside Expected
According to data from CryptoQuant, leveraged trading in the crypto market has reached its highest level this year, indicating that investors are taking on greater risk. With increased leverage comes the likelihood of heightened volatility. Market analyst Ali Martinez predicts further volatility in the near term.
Veteran trader Peter Brandt also believes Bitcoin’s price will continue to fall. Brandt notes that Bitcoin has been in a downtrend for 30 weeks, and despite potential Fed rate cuts and rising gold prices, he expects further declines. He advises investors to be cautious and mindful of the risks in the current market conditions.
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The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
