As an experienced analyst, I’ve seen my fair share of market fluctuations in the crypto space. The recent decline in the total crypto market cap to $2.48 trillion is a sobering reminder of the volatility that comes with investing in this asset class. The sell-off wave continues to impact retail investors, leaving many disheartened and uncertain about the future.
Based on CoinGecko’s latest figures, the overall value of the cryptocurrency market has dropped by 2% to reach a total of approximately $2.48 trillion. This decline mirrors the ongoing sell-off trend that has negatively impacted many retail investors, resulting in dissatisfaction and losses. The price of Bitcoin currently hovers around $65,510, dipping slightly below its previous support level of $65,000. Given the volatile nature of the crypto market, it remains uncertain whether Bitcoin will recover from this point or slide further to retest prices closer to $64,000 or even $60,000.
Bitcoin Fear and Greed Index Holds High
The expectation of a swift price surge for Bitcoin and other cryptocurrencies following the 2024 halving event is becoming less likely, as investors face significant losses and grow increasingly disheartened. Last week’s sudden rise to $70,000 brought renewed hope, but the Federal Open Market Committee (FOMC) meeting and the Federal Reserve’s firm stance against interest rate cuts cast a shadow of doubt over the market.
Over the past week, Bitcoin’s price has dropped by 2.5%. Additionally, there was a 4.5% reduction in its value over the past two weeks. The region around $65,000 seems to be the strongest short-term support for now.
As a researcher, I would argue that holding this level in the market could strengthen the bullish sentiment among investors for the remainder of the week. This optimistic view is fueled by growing anticipation for a potential price surge toward $70,000.
Although there’s a noticeable absence of excitement, the Crypto Fear and Greed Index remains steady at 74. This signifies that we are in the initial phases of investor greed towards Bitcoin, suggesting many still view it as an attractive purchase opportunity at present prices.
As a researcher studying the cryptocurrency market, I would like to issue a warning: Be wary of letting greed cloud your judgment when it comes to the index. Those who have previously purchased Bitcoin at lower prices might consider selling it and investing in altcoins during a dip. This could potentially benefit certain altcoins, particularly Ethereum with its impending trading of spot ETFs. However, this action would impede Bitcoin’s progress in surpassing the $70,000 mark.
According to a study conducted by researchers at CryptoQuant, retail investors have not significantly influenced Bitcoin’s recent price rally yet. Typically, retail investors jump into the market during periods of heightened excitement. However, with Bitcoin hovering around $65,000 and its previous support level being $70,000, long-term holders are expected to bolster the market instead.
Based on the current structure, it seems we haven’t experienced the maximum excitement or peak of this cycle yet. The presence of a large number of long-term investors in the market acts as a stronger foundation for price stability. (According to CryptoQuant)
Bitcoin Price Analysis: A Time To Buy?
Bitcoin’s price chart shows a falling wedge pattern indicative of a possible reversal, implying an imminent short-term uptick. Nonetheless, this recovery can only be confirmed if the crucial support level at $65,000 remains robust.
When the Relative Strength Index (RSI) hovers around 40, it indicates a stronger tendency towards selling in the Bitcoin market. Should the RSI fall further, traders might consider shorting Bitcoin, intensifying the downward pressure on the support level at $65,000. If the selling wave persists, Bitcoin may be compelled to search for liquidity among buyers at lower price points such as $63,000 and $60,000.
Two “death crosses” appearing on a single four-hour chart indicate that sellers currently hold the dominant position in the market. Consequently, it will be challenging for buyers to regain control and reverse the downward trend.
Until Bitcoin’s price surpasses the upper trend line in a falling wedge formation, this pattern will not be validated. Once the breakout occurs, investors will pay close attention and place more buy orders, hoping for potential profits up to $71,000.
As an analyst, I would like to highlight two crucial resistance levels that traders should be aware of: the seller congestion zones at $68,000 and $70,000. Overcoming these hurdles could significantly enhance the bullish sentiment, potentially leading us towards new all-time highs.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- USD MYR PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- XYO PREDICTION. XYO cryptocurrency
2024-06-18 15:12