Bitcoin
Crypto markets are collapsing sharply, here’s why traders are turning bearish on Bitcoin
The crypto market is plummeting! Bitcoin Price dropped below $68,000! Most altcoins are slowly entering the bearish pit. These current market scenarios have raised huge concerns among market participants who were speculating about a strong recovery. However, after the recent low weekly close, the possibility of a positive week ahead was below average. As a result, bearish activity exceeded expectations, causing a nearly 2.8% drop in total market capitalization.
Bitcoin price has experienced a nice bullish move, with the increase in spot BTC ETF 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 therefore traders are not willing to take any risk ahead of the USCPI print and a FED meeting. As a result, the price of BTC fell to its weekly low.
Is Bitcoin in danger? Will BTC price fall sharply and test the lower support zone?
The current trading setup suggests that the price remains under bearish influence, as global market dynamics have just turned from bullish to neutral and now bearish. However, the recent breakdown could be considered a short-term pullback as the price continues to signal the possibility of a bullish reversal in the coming days.
The DMI has entered a decisive phase, which could result in a break or break. Furthermore, the current trading setup favors the continuation of a downtrend as OBV heads south. Therefore, BTC price is expected to continue the downward trend and reach lower support below $65,000. However, until the price remains above $65,000, the trend could remain under bullish influence, keeping hopes of a bullish breakout alive.
Collectively, Bitcoin (BTC) price remains in a decisive phase regardless of the bearish price actions that are causing some headwinds.