Bearish Sentiment Will Continue in Q3?
Bitcoin, the king of all cryptocurrencies is facing a downturn as the price dropped below US$26k
After a disastrous 2022, this year was supposed to be the year of recovery for the crypto market. The combined market cap of all tokens rose above US$1 trillion for the first time in almost a year and the entire sector was pumping, entering a decisive bullish phase. However, some experts claim that the crypto market rally is over. Especially after Bitcoin failed to reach the US$30k mark.
Bitcoin, often referred to as the “king” of cryptocurrencies, holds a prominent position in the market. Its decentralized nature, limited supply, and growing adoption by institutions have established its reputation as a reliable investment. Despite occasional price volatility, Bitcoin has consistently demonstrated resilience throughout, making it an appealing choice for long-term investors seeking stability.
With a dominant market cap and a solid track record, Bitcoin continues to attract mainstream attention and financial institutions. Its position as a store of value and a potential hedge against inflation remains unchallenged. However, it is essential to consider factors such as regulatory developments, market sentiment, and technological advancements that can impact Bitcoin’s future trajectory.
The BTC price soared since the new year and settled around US$28,000 till last week and suddenly dropped after the SEC filed a lawsuit against Binance and Coinbase, now valued at around US$25,800. This intricate value made the market experience a bearish chart pattern.
The BTC value declined to 3.10% in seven days. This descending chart pattern indicates that the value even falls lesser than US$23,000. Adverse macroeconomic factors, adverse central bank policies, and negative regulatory attention are the factors behind the downturn in BTC prices.
Although each nation wants to encourage digital assets, they can’t oversee the impostor activities that happening in the crypto sector. To address this concern, SEC has regulated new rules to have transparency and accountability. However, with strict regulations, the crypto coins prices are currently swinging.
As of the latest prediction by crypto analyst Benjamin Cowen, Bitcoin could undergo significant fluctuations, potentially dropping over 50% or appreciating by over 30% in the coming months. It is essential to keep an eye on Bitcoin’s trajectory as it can impact the overall market sentiment.
The price action has formed a series of higher lows and lower highs leading to the appearance of a symmetrical triangle on the daily chart. If the technical setup plays out correctly, then traders could witness a 13.11% rally for the flagship crypto on the upside from the triangle’s resistance line. However, the movement could be in either direction.
At press time, BTC was exchanging hands at US$25,802 with a Bearish bias. Rising above this level would confirm a bullish breakout toward the optimistic target of the technical chart pattern at US$28,385 but it can also drop up to US$23,652.
Although the bullish outlook on Bitcoin hasn’t yet become evident, traders can still look for signs to identify an early trend reversal. RSI (Relative Strength Index) could drop a bit lower before bouncing off the average level. AO (Awesome Oscillator) shows a drop in bullish momentum but is close to a zero-line reset. Even after the downturn, many analysts still have faith that things could improve.
Even though Bitcoin is known for its ability to overcome challenges and make strong comebacks, the doubts that the investors have are more than obvious at this point. The crypto market is changing rapidly, and some enthusiasts are beginning to question whether Bitcoin is worth investing in.
Bitcoin, the king of all cryptocurrencies is facing a downturn as the price dropped below US$26k
After a disastrous 2022, this year was supposed to be the year of recovery for the crypto market. The combined market cap of all tokens rose above US$1 trillion for the first time in almost a year and the entire sector was pumping, entering a decisive bullish phase. However, some experts claim that the crypto market rally is over. Especially after Bitcoin failed to reach the US$30k mark.
Bitcoin, often referred to as the “king” of cryptocurrencies, holds a prominent position in the market. Its decentralized nature, limited supply, and growing adoption by institutions have established its reputation as a reliable investment. Despite occasional price volatility, Bitcoin has consistently demonstrated resilience throughout, making it an appealing choice for long-term investors seeking stability.
With a dominant market cap and a solid track record, Bitcoin continues to attract mainstream attention and financial institutions. Its position as a store of value and a potential hedge against inflation remains unchallenged. However, it is essential to consider factors such as regulatory developments, market sentiment, and technological advancements that can impact Bitcoin’s future trajectory.
The BTC price soared since the new year and settled around US$28,000 till last week and suddenly dropped after the SEC filed a lawsuit against Binance and Coinbase, now valued at around US$25,800. This intricate value made the market experience a bearish chart pattern.
The BTC value declined to 3.10% in seven days. This descending chart pattern indicates that the value even falls lesser than US$23,000. Adverse macroeconomic factors, adverse central bank policies, and negative regulatory attention are the factors behind the downturn in BTC prices.
Although each nation wants to encourage digital assets, they can’t oversee the impostor activities that happening in the crypto sector. To address this concern, SEC has regulated new rules to have transparency and accountability. However, with strict regulations, the crypto coins prices are currently swinging.
As of the latest prediction by crypto analyst Benjamin Cowen, Bitcoin could undergo significant fluctuations, potentially dropping over 50% or appreciating by over 30% in the coming months. It is essential to keep an eye on Bitcoin’s trajectory as it can impact the overall market sentiment.
The price action has formed a series of higher lows and lower highs leading to the appearance of a symmetrical triangle on the daily chart. If the technical setup plays out correctly, then traders could witness a 13.11% rally for the flagship crypto on the upside from the triangle’s resistance line. However, the movement could be in either direction.
At press time, BTC was exchanging hands at US$25,802 with a Bearish bias. Rising above this level would confirm a bullish breakout toward the optimistic target of the technical chart pattern at US$28,385 but it can also drop up to US$23,652.
Although the bullish outlook on Bitcoin hasn’t yet become evident, traders can still look for signs to identify an early trend reversal. RSI (Relative Strength Index) could drop a bit lower before bouncing off the average level. AO (Awesome Oscillator) shows a drop in bullish momentum but is close to a zero-line reset. Even after the downturn, many analysts still have faith that things could improve.
Even though Bitcoin is known for its ability to overcome challenges and make strong comebacks, the doubts that the investors have are more than obvious at this point. The crypto market is changing rapidly, and some enthusiasts are beginning to question whether Bitcoin is worth investing in.
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