Volatility in the cryptocurrency market has increased as Bitcoin's price breaks through a key support level. Investors are awaiting the next moves.
Whale Traders' Caution and Short-Term Volatility
Over the past week, demand for Bitcoin among large investors has significantly declined, indicating possible weakening in the coming months. For instance, US spot Bitcoin ETFs have recorded notable cash outflows for seven consecutive days. On Thursday, a net outflow of approximately $211 million was noted, led by Fidelity's FBTC. However, BlackRock's IBIT has not registered any outflows in recent days. Meanwhile, on-chain data shows that several large investors have transferred their Bitcoins to exchanges over the past few days.
BTC Price Expectations
According to veteran trader Peter Brandt, Bitcoin's price is forming a macro inverted expanding triangle, which precedes significant bullish growth; however, bearish sentiments currently dominate. Arthur Hayes, co-founder of Bitmex, predicts that Bitcoin's price will drop below $50k in the near term before reaching a new all-time high. Despite the anticipated interest rate cut, Brandt believes BTC's price is headed to retest the support level around $46k.
Analysts' Conclusions
Amid the price drop and growing concerns, Bitcoin's Fear and Greed Index has fallen to 22%, indicating extreme fear. The overall supply of Bitcoin on centralized exchanges continues to decline over the past five months, suggesting the confidence of long-term holders.
Investors are closely monitoring further developments in the cryptocurrency market, with many opting to hold off on purchases until the correction concludes.
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