Analysis of Recent Bitcoin Market Trends
Recently, Bitcoin (BTC) concluded trading on a negative trajectory after breaching the crucial support level between $56,500 and $61,466. Despite a potential bullish pattern formation, escalating panic levels have heightened market uncertainties.
The commencement of the week witnessed Bitcoin trading around $55,422, coinciding with a plunge in the fear and greed index to 28, signifying rising concerns among traders. Notably, Bitcoin recorded consistent closures below the 200-day Moving Average (MA) for the past five days, a trend not observed since October last year.
Bitcoin Confronts Bearish Sentiments Amid Escalating Sell-offs
Bitcoin has been grappling with bearish sentiments in recent periods, primarily driven by increased selling activities from major players. Notably, the German government has been actively shedding its Bitcoin holdings, surpassing $85 million in transactions on a single Sunday, contrasting prior speculations of a potential repurchase.
In the US, the demand for spot Bitcoin ETFs has remained subdued as BTC miners escalate sales to cover operational costs.
Looking ahead, the cryptocurrency sector eagerly awaits economic directives from the US Federal Reserve later this week. The rumor surrounding a potential US interest rate cut later in the year, influenced by the looming general election, could potentially spur positive sentiments in the crypto market.
Additionally, prominent stock indexes have recently sustained an optimistic stance, further enhancing market confidence.
Bitcoin's Bullish Flag Formation and Future Dominance Predictions
Bitcoin has been formulating a weekly bullish flag over the past four months, suggesting the potential for a new record high later this year. According to renowned crypto analyst Benjamin Cowen, reclaiming the 200-day Simple Moving Average (SMA) as a support level is crucial for Bitcoin's chances of a bullish recovery in the last quarter.
Cowen also predicts a climb in Bitcoin's dominance towards 60 percent in the forthcoming months. He anticipates a reversal trend next year, setting the stage for the much-awaited altseason.
